Question

Which of the following statements is​ true? A. ABC systems provide benefit to manufacturing companies only. Merchandising companies carry only merchandising​ (finished goods) inventory and service companies generally carry no inventory at​ all, and​ therefore, an ABC system would not apply to these companies. B. ABC systems apply equally well to manufacturing and​ retail-oriented merchandising​ companies, but not to​ distribution-oriented merchandising​ companies, which carry only finished goods​ inventory, or to service​ companies, which do not carry inventory. C. ABC systems apply equally well to​ manufacturing, merchandising and service companies. D. ABC systems apply equally well to manufacturing and merchandising​ companies, but not to service companies. Service companies generally carry no​ inventory, and​ therefore, an ABC system would provide​ little, if​ any, benefit.

Answer 1

Answer:

(C) ABC systems apply equally well to manufacturing, merchandising, and service companies.

Explanation:

Job costing includes the point-by-point aggregation of generation costs inferable from precise units. For instance, the development of a handcrafted household item would be represented with an occupation costing system. The expenses of all work dealt with that particular thing of furniture would be recorded on a period sheet and afterward assembled on a cost sheet for that activity.

Likewise, any wood or different parts utilized in the development of the furniture would be charged to the creation of employment connected to that household item.