114.Which of the following businesses would most likely use job order costing?
A) A print shop that specializes in wedding invitations.
B) A company that makes frozen pizzas.
C) A brewery.
D) An oil refinery.

Question

Quizplus · Accepted Answer

Job order costing is a costing system used by companies that produce unique or customized products or services, and the cost is tracked for each job order separately. A print shop that specializes in wedding invitations would most likely use job order costing since each invitation order could be different from the other orders. The cost of paper, ink, design fees, and labor for each order will vary based on the customer's needs. The other options, frozen pizza, brewery, and oil refinery, are likely to use process costing since they produce homogenous products that do not require customization.

114Which of the Following Businesses Would Most Likely Use Job