ECONOMICS

Detailed explanation-1: -Question: What types of companies use job order costing systems? Answer: Accounting firms, building contractors, furniture manufacturer, etc., use job order costing system.

Detailed explanation-2: -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: -Generally, the application of job costing method is followed in industries such as printing press, automobile garage, repair workshops, shipbuilding, foundry, and other similar manufacturing units, which manufactures according to customer’s specific requirements.