If a product is made to customers' orders or specifications or if products are made in separately identifiable "lots" or "batches," the appropriate cost accounting system is a

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A job order system is designed for situations where products are made to customers' orders or specifications or are made in separately identifiable "lots" or "batches." This system involves tracking the costs of each individual job or batch separately and assigning those costs to the final product.

If a Product Is Made to Customers' Orders or Specifications