COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it manufactures a large volume of similar products
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its production is continuous.
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it manufactures products with unique characteristics.
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it uses a periodic inventory system.
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Detailed explanation-1: -A company is more likely to use a job order cost system if: it manufactures products with unique characteristics. are converted into finished goods.
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: -Law firms and accounting businesses Since lawyers and accountants work with different clients on unique accounts, many will use a job order costing system to track how much time and resources were used for each customer.
Detailed explanation-4: -Answer: Paint manufacturer, Yacht builder and soft drink bottler companies are most likely to use the process costing system. The print shop and caterer are most likely to use the job order costing system.