Operation costing, also known as hybrid costing, is a method employed by organizations that would like to have features in their system of both job costing and process costing. Which of the following scenarios would most likely lead to the exploration of implementing an operation costing system instead of using only a job costing or only a process costing system?

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This question requires familiarity with the features of operation costing as compared to job costing and process costing. Choice A is the only answer listed that correctly identifies a situation that would lead to the implementation of operation costing. The other choices are either inaccurate or apply to only job costing or only process costing.

Operation Costing, Also Known as Hybrid Costing, Is a Method