Q 15E_g - 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.

g. A textbook publisher that produces copies of a particular book in batches.

Step-by-Step Solution

Answer

Answer:

Job order costing system is used by the textbook publisher that produces the copies of a particular book in batches.

Step-by-Step Solution:

Step 1: Job order costing system

Job order costing system is a system that takes place when the customers order small, unique batches of the products. 

Step 2: Classification of costing system according to the characteristics

The costing system used by the textbook publishers that produce copies of a particular book in batches is job order costing system, because the books are published in batches.