ECONOMICS

Detailed explanation-1: -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-2: -Job order costing is used to measure the revenue gained against the expenses incurred during the production process so that we can determine the profit for every unique job which is being manufactured.

Detailed explanation-3: -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-4: -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-5: -Job costing is the process of allocating all of your costs (direct materials, direct labor, and indirect expenses) to specific jobs or clients. This provides an accurate amount of your cost of goods sold so that you can track and evaluate your true profit margins per job or client.