Job order cost accounting systems may be used for planning and controlling a service business.

Question

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Job order cost accounting systems can be used in service businesses that provide customized services to clients such as law firms, consulting firms, and advertising agencies. In such businesses, the costs of providing services can vary from client to client, and the job order cost accounting system helps in allocating costs to each job and determining the profitability of each job or project.

Job Order Cost Accounting Systems May Be Used for Planning