A company that manufactures small quantities of identifiable products will use a job-order costing system.

Question

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Job-order costing is used by companies that manufacture small quantities of identifiable products. This is because each job or product has its own unique characteristics, and costs must be assigned to each job or product separately. Therefore, a job-order costing system is necessary to track costs and determine the cost of each job or product produced.

A Company That Manufactures Small Quantities of Identifiable Products Will