Q 15E_e - Horngren'S Financial And Managerial Accounting

Question

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

e. A computer repair service that makes service calls to homes.

Step-by-Step Solution

Answer

Answer:

Job order costing system is used by the company providing computer repair services to their clients.

Step-by-Step Solution:

Step 1: Job order costing system

Job order costing system is a system which is used by an organization providing services to their clients on different job basis. This system is used to assign the cost to specific job.

Step 2: Classification of costing system according to the characteristics

The service sector companies mostly use the job order costing system for determining the cost of the specific job. Hence, the company engaged in computer repairing services that makes service calls to home use the job order costing system.