Q 15E_c

Question

Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.

c. A company that manufactures thousands of identical files.

Step-by-Step Solution

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Answer

Answer:

Process costing system is used by the company that manufacture thousands of similar files.

1Step-by-Step Solution:

Step 1: Process costing system

Process costing system is used by the companies which are engaged in production of similar or same units of the product in large quantity. 

2Step 2: Classification of costing system according to the characteristics

The company that manufacture thousands of identical files use the process costing while determining the costing of the manufacturing the files.