Large aircraft producers such as the Boeing Company normally use:
A)Job order costing.
B)Process costing.
C)Mixed costing.
D)Full costing.
E)Simple costing.

Question

Quizplus · Accepted Answer

Large aircraft producers such as the Boeing Company produce customized planes on a job-by-job basis. Job order costing is the best choice for such a company as it allows them to track the costs associated with each individual job, which includes the use of direct labor, direct materials, and overhead costs. This helps the company to accurately determine the total cost of production and to set prices for the planes they produce.

Large Aircraft Producers Such as the Boeing Company Normally Use