Choose the most likely used costing system for the industries listed below.

-Costing system used by a cruise ship builder
A)Process costing
B)Job order costing

Question

Choose the most likely used costing system for the industries listed below.

-Costing system used by a cruise ship builder
A)Process costing
B)Job order costing

Quizplus · Accepted Answer

Cruise ship building is a specific and customized process that involves varying degrees of materials, labor, and overhead costs for each ship. Therefore, job order costing is the most suitable costing system for cruise ship builders as it provides a detailed breakdown of costs incurred for each individual ship.

Choose the Most Likely Used Costing System for the Industries