The costing system used when entities provide goods or services in response to customer orders and specifications is known as:

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Job costing is used when entities receive customer orders and produce goods or services based on those specific orders and specifications. The costs are accumulated for each job, and the total cost is then allocated to the individual jobs based on their unique characteristics. This is in contrast to process costing, where the costs are accumulated for a group of identical products or services. Conversion costing is a general term used to describe the accumulation of costs related to the transformation of raw materials into finished goods. Just-in-time processing refers to a production strategy focused on reducing inventory levels and increasing efficiency through tight coordination of production activities.

The Costing System Used When Entities Provide Goods or Services