ECONOMICS

Detailed explanation-1: -The correct answer is D. Job-order costing is mainly used in firms with custom product and services such as a video production company. Job order costing refers to a system for assigning and accumulating manufacturing costs of an individual unit of output.

Detailed explanation-2: -Direct Material – Direct materials are the major contributors to job order costing. These costs are entirely dependent on the quality and quantity of finished goods. Raw materials. read more directly consumed for completion of specific jobs or manufacturing of finished goods come under direct material.

Detailed explanation-3: -In a job-order costing system, direct materials costs and direct labor costs are usually traced directly to jobs. Overhead is applied to jobs using a predetermined rate. Actual overhead costs are not traced to jobs.