The type of product costing system used by a company is determined by the:

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The type of product costing system used by a company is largely determined by its production process. Different production processes require different costing systems in order to accurately track and allocate costs associated with producing goods. For example, a company using a job costing system would be better suited for a production process involving unique, customized products, while a process costing system would be better suited for a production process involving large volumes of uniform products. The plant supervisor, project manager, and chief executive officer may all have some input or influence on the costing system used, but ultimately it is the production process itself that should guide the choice of costing system.

The Type of Product Costing System Used by a Company