A company that produces expensive customized machines would probably use which of the following methods of product costing?

Question

Quizplus · Accepted Answer

A company that produces expensive customized machines would likely use job order costing because each machine is unique and produced in response to a specific customer order. Job order costing allows the company to allocate direct material, labor, and overhead costs to each individual order and determine the cost of producing each machine. This method is ideal for products that have unique characteristics and require significant customization.

A Company That Produces Expensive Customized Machines Would Probably Use