Large aircraft manufacturers normally use:
A)Job order costing.
B)Process costing.
C)Mixed costing.
D)Full costing.
E)Simple costing.

Question

Quizplus · Accepted Answer

Large aircraft manufacturers typically produce a limited number of unique products (such as specific models of airplanes) with significant variation in production requirements, materials, and labor costs. Therefore, job order costing is the best choice as it allows the manufacturer to assign costs to specific jobs or products based on their unique specifications and production requirements. This method provides more accurate product cost information, which is crucial for pricing decisions, controlling costs, and evaluating profitability.

Large Aircraft Manufacturers Normally Use