Question

Which of the following types of production would most likely use job-order costing? A. Construction of custom homes B. Farming C. Manufacturing of heavy-duty machinery D. Electrical power generation E. Both A and C.

Answer 1

Answer:

A and C

Explanation:

Construction of custom homes and

Manufacturing of heavy-duty machinery would most likely make use of job order costing.

Job Order Costing is useful for allocating costs based on a specific job order. It is a system that assigns and accumulates what it costs to manufacture an individual unit of output.

manufacturing businesses that use this system are clothing factories, food companies, air craft manufacturing companies.

service businesses that use the system include movie producers, accounting firms, law firms, hospitals etc.