Which of the following statements is true of costing systems? A. A construction company would likely use a process costing system. B. An accounting firm would likely use a job order costing system. C. A job order costing system would be used by manufacturers of baking utensils. D. A process costing system would be used by manufacturers of customminusmade perfumes.

Question

Business

Pranav Decker

25 December, 13:25

Which of the following statements is true of costing systems? A. A construction company would likely use a process costing system. B. An accounting firm would likely use a job order costing system. C. A job order costing system would be used by manufacturers of baking utensils. D. A process costing system would be used by manufacturers of customminusmade perfumes.

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Answers (1)

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Kendal Wade · Answer 1

B. An accounting firm would likely use a job order costing system

Explanation:

The job order costing is the cost which is depended upon the various job needs that reflects the differential costing based on the instructions given by the customer.

On the other hand, the process costing deals with different processes that are held in the company premises.

As we cant say which costing is used but the job order costing is used by the accounting firm as it gives the various services depending upon the customer needs and for that separate fees is to be charged.