Job order costing:

Question

Job order costing:

Quizplus · Accepted Answer

Job order costing is a costing method used in situations where products or services are customized or significantly different from one another. It tracks the costs for each customer or job separately, giving managers a clear idea of the profitability of each job. Job order costing can be used in both manufacturing and service industries. Option A is incorrect because job order costing can also be used in service industries. Option C is incorrect because job order costing does not allocate an equal amount of cost to each unit made but rather tracks the costs associated with each job or project. Option D is incorrect because job order costing is used in situations where each unit of output is unique, rather than identical.

Job Order Costing