The ________ system is better suited for a single physical unit or a few similar units.
A) process-costing
B) job-order costing
C) activity-based costing
D) activity-based management

Question

Quizplus · Accepted Answer

Job-order costing is designed for individual or small groups of similar units. It is used to assign costs to individual products or services that are distinct from one another. For example, building a custom house, constructing a ship, or producing a large piece of machinery would be suitable for job-order costing. Process-costing, on the other hand, is suitable for homogeneous items produced in large quantities, such as sugar or oil refining, chemical processing, or cement manufacturing. Activity-based costing and activity-based management are more advanced costing systems that focus on identifying and eliminating waste in business processes.

The ________ System Is Better Suited for a Single Physical