Job-order costing is more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.

Question

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Job-order costing is better suited for situations where products or services are custom-made or produced in small batches to customer specifications. This would result in a heterogeneous mix of products, making it difficult to use process costing which is more suitable for homogeneous mass-produced products.

Job-Order Costing Is More Likely to Be Used Than Process