A manufacturer of luxury yachts would use which type of costing system?

Question

Quizplus · Accepted Answer

A luxury yacht manufacturer would most likely use a job costing system, as each yacht is unique and tailored to the specific needs and wants of the customer. Job costing tracks the costs of materials, labor, and overhead for each individual job (in this case, each yacht). Process costing, on the other hand, is used for homogeneous products where the costs are spread out evenly over a large number of identical items produced.

A Manufacturer of Luxury Yachts Would Use Which Type of Costing