Manufacturing and service firms producing unique products or services require job-order accounting systems.

Question

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Job-order accounting systems are designed for businesses that produce unique products or services. These systems track the direct and indirect costs associated with the production of each specific job or project. This is necessary to accurately determine the cost of goods sold and the profitability of each job. Industries that commonly use job-order accounting systems include construction, printing, and custom manufacturing.

Manufacturing and Service Firms Producing Unique Products or Services Require