Sales of scrap may be traced to the individual jobs in which it occurred when the ________ system is used.

Question

Quizplus · Accepted Answer

Job-costing system is used to trace the costs and revenues of individual jobs or batches of products. It allows for the tracking of specific costs, such as scrap, to each job or batch. Process costing system, on the other hand, is used for homogeneous products produced in large quantities, where it is difficult to trace specific costs to each unit. Budgeted costing, revenue costing, and weighted-average costing are not relevant to the tracking of scrap sales to individual jobs.

Sales of Scrap May Be Traced to the Individual Jobs