A job order costing system would best fit the needs of a company that makes:
A) Custom machinery.
B) Cement.
C) Shoes and apparel.
D) Pencils and erasers.
E) Paint.

Question

Quizplus · Accepted Answer

A job order costing system is most appropriate for companies that produce custom products, such as custom machinery. This is because each product produced is unique, and the costs involved in producing each job can be easily tracked and assigned to that specific job. Cement, shoes and apparel, pencils and erasers, and paint are all examples of products that are typically mass-produced and would be better suited for a process costing system.

A Job Order Costing System Would Best Fit the Needs