Q1RQ
Question
Question: What types of companies use job order costing systems?
Step-by-Step Solution
Verified Answer
Answer:
The companies that manufacture the specific or unique products in small quantities and provide specialized services to the customers or clients of the company uses the job order costing system.
1Step 1: Costing system
The costing system means the system which is used by the company for valuing the cost of the products produced by the company.
2Step 2: Job order costing system
Any company engaged in manufacturing the unique product or the products in small quantities or the product as per the customer demand, uses the job order costing system for deteriming the production costing system. It is the system to identify the cost of every job separately.
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Question: List ways in which job order costing systems are similar to process costing systems.
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