ECONOMICS

Detailed explanation-1: -Examples of companies that use job costing systems include Boeing (airplanes), Lockheed Martin (advanced technology systems), and Deloitte & Touche (accounting).

Detailed explanation-2: -Costs accumulate on manufactured goods while they are in production. The three costs of production are direct materials, direct labor, and factory overhead. For unique products, each job accumulates different amounts of each of these three costs.

Detailed explanation-3: -A company producing many different kinds of furniture would probably use a job-order cost system. T Job-order costing is used when many different kinds of products are made. Process costing is used in situations where output is homogeneous-the company makes a single product for long periods of time.

Detailed explanation-4: -Importance of job order costing It helps the company make estimates about the value of materials, labor, and overhead that will be spent while doing that particular job. Efficient job order costing helps companies to create quotes that are low enough to be competitive but still profitable for the company.