ECONOMICS

Detailed explanation-1: -Answer and Explanation: The statement is FALSE. Although job-order costing is one of the two systems used in manufacturing, it can just as easily be used in service companies, and indeed it is the preferred costing system in most professional offices, including that of CPAs, lawyers, and engineers.

Detailed explanation-2: -Job order costing is also used for service businesses where the service and costs are unique to each customer, such as those of an attorney, accountant, physician, or event planner. Each customer, client, or patient is a separate job or project.

Detailed explanation-3: -True or False: Job-order costing can ONLY be used in manufacturing firms. False (Also used extensively in service industries.)

Detailed explanation-4: -Your business can use job order costing and process costing to track production costs and allocate expenses, such as time, materials and labor, to your products, and both use about the same information to calculate unit cost.