Which of the following costing system is appropriate for a company that produces customized products?

Question

Quizplus · Accepted Answer

Job costing is appropriate for a company that produces customized products because each product requires unique materials, labor, and overhead costs. These costs can be specifically traced to each job, allowing for accurate cost calculation and pricing. Other costing systems like process costing and operation costing are better suited for companies that manufacture large quantities of identical products. Standard costing is a method of determining costs that assumes standard costs for materials, labor, and overhead, and is not as suitable for a company that produces customized products.

Which of the Following Costing System Is Appropriate for a Company