Question

A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing. Group startsTrue or False

Answer 1

Answer:

It is TRUE that a flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than a process costing.

Explanation:

This is because typically, a Job-order costing process is best suited for a production system whereby there are several different products or services and. And these products are tailored to individual consumers or customer specifications.

On the other hand, process costing is a form of cost that is best suited for manufacturing homogenous products and can be produced massively. Hence, flour manufacturer in the uses Process costing while customized leather Jacket producers would opt for Job order costing process