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Job-order costing would most likely be used in a(n) Blank______.

a. Soda bottling factory
b. Oil refinery
c. Construction company
d. Dairy farm that produces raw milk

User Federicot
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1 Answer

7 votes

Final answer:

Job-order costing is typically used by businesses like construction companies where each job is unique and costs can be traced to a specific project. This contrasts with operations like soda bottling factories or oil refineries that use process costing for homogeneous goods.

Step-by-step explanation:

Job-order costing is a system used to assign manufacturing costs to an individual product or batch of products. Generally, job-order costing would be most likely used in a business that has unique, custom orders or where the products are distinguishable from each other. An example of such an application would be a construction company, where every project or job is different, and costs can be easily traced to a specific job.

In contrast, a soda bottling factory or an oil refinery typically uses process costing because they produce goods which are indistinguishable from one another. A dairy farm that produces raw milk would also likely not use job-order costing due to the nature of its homogenous product. Hence, the correct choice is c. Construction company.

User Loenix
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