Job-order cost systems are used by many service businesses;process cost systems are not applicable to service businesses.

Question

Quizplus · Accepted Answer

The statement is false. Process cost systems can be applicable to service businesses that provide repetitive and standardized services such as printing companies, law firms, and consulting firms. However, most service businesses use job-order cost systems to track the costs of providing customized services to specific clients.

Job-Order Cost Systems Are Used by Many Service Businesses;process Cost