ECONOMICS

Detailed explanation-1: -A company that manufactures small quantities of identifiable products will use a process costing system. A company that manufactures large quantities of homogenous goods will use a process costing system. In an actual job-order costing system, factory overhead is assigned to a job on a periodic basis.

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 system for determining the cost of individual products, perhaps within a larger manufacturing job. It is an efficient way to forecast actual expenses for materials, labor, and overhead before production. Armed with a job cost, you can determine the advisability of producing that particular item.

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