Which of the following statements concerning job-order costing is TRUE?
A)Job-order costing deals with great masses of similar items.
B)Job-order costing is used by the chemical industry.
C)Job-order costing is not a common system used in product costing.
D)Job-order costing applies costs to specific jobs which may consist of a single unit or a few similar units.

Question

Quizplus · Accepted Answer

Job-order costing applies costs to specific jobs, which may consist of a single unit or a few similar units. This type of costing system is commonly used in industries such as manufacturing, construction, and printing, where products or services are customized to meet the specific needs of individual customers. It is a widely used method of product costing. Options A and B are incorrect statements, and option C is incorrect as many industries use job-order costing.

Which of the Following Statements Concerning Job-Order Costing Is TRUE