Choose the most likely used costing system for the industries listed below.
-Costing system used by a manufacturer of custom furniture.
A)Process Costing
B)Job Order Costing

Question

Quizplus · Accepted Answer

Job Order Costing is the most likely costing system used by a manufacturer of custom furniture. This is because each order for custom furniture is unique and requires specific materials and labor costs, which would be tracked through a job order costing system. Process costing, on the other hand, is typically used for industries that produce large quantities of identical products, such as food or chemicals.

Choose the Most Likely Used Costing System for the Industries