The manufacturing operation that would be most likely to use a job-order costing system is
A)toy manufacturing.
B)candy manufacturing.
C)crude oil refining.
D)shipbuilding.

Question

Quizplus · Accepted Answer

Shipbuilding is a complex and unique process that involves the production of customized ships in limited quantities. Therefore, it requires a job-order costing system to track the costs of materials, labor, and overheads associated with each ship. This system enables the shipbuilder to calculate the cost of each job and determine the selling price of the ship. Toy and candy manufacturing involve the production of homogeneous products in large quantities, making them better suited for a process costing system. Crude oil refining involves continuous processing, making it suitable for a process costing system as well.

The Manufacturing Operation That Would Be Most Likely to Use