Which of the following companies would be the most likely to adopt a job order costing system?
A) Beverage manufacturer
B) Oil Refinery
C) Custom Home Contractor
D) Clothing manufacturer

Question

Quizplus · Accepted Answer

The custom home contractor would be the most likely to adopt a job order costing system because each home is unique and requires specific materials, labor, and overhead costs to be tracked separately. Job order costing is typically used for producing customized, unique products or services. The other companies listed - beverage manufacturer, oil refinery, and clothing manufacturer - are more likely to use process costing systems, which are used for standardized, homogenous products produced in large volumes.

Which of the Following Companies Would Be the Most Likely