Choose the most likely used costing system for the industries listed below.
-Costing system used by a home builder.
A)Process Costing
B)Job Order Costing

Question

Quizplus · Accepted Answer

Home builders typically use job order costing systems because each house they build is unique and requires different resources and materials. Job order costing is suitable for custom-made, one-of-a-kind products, such as homes, where each unit produced differs from the others, and costs are tracked for each unit separately.

Choose the Most Likely Used Costing System for the Industries