Final answer:
Operation costing is a hybrid of job-order and process costing. It is suitable for industries that have characteristics of both costing systems, such as custom furniture manufacturing.
Step-by-step explanation:
Operation costing is a hybrid of job-order and process costing. Job-order costing is used when products or services are produced to order, while process costing is used when products or services are produced in a continuous or repetitive manner. Operation costing incorporates elements of both costing systems, making it suitable for industries that have characteristics of both job-order and process costing. For example, in the manufacturing of custom furniture, each piece of furniture is made to order (job-order), but the production process involves multiple stages and standardized operations (process costing).