ECONOMICS

Detailed explanation-1: -A company that manufactures large quantities of homogenous goods will use a job-order costing system. Cost flows and physical flows of units are identical. In an actual job-order costing system, factory overhead is assigned to a job continuously during the production process.

Detailed explanation-2: -White Collar Businesses Companies in the white-collar sector of business, including law firms, accounting businesses, and private investment companies, can utilize job order costing to manage individual client accounts. For example, accounting firms can consider each individual client a job.

Detailed explanation-3: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.

Detailed explanation-4: -Answer: Paint manufacturer, Yacht builder and soft drink bottler companies are most likely to use the process costing system.

Detailed explanation-5: -Job order systems are custom orders because the cost of the direct material and direct labor are traced directly to the job being produced. For example, Boeing uses job order costing to manufacture planes.