Final answer:
The most suitable option for a job-order costing system is airplane manufacturing, as it involves custom-built products with unique costs per job. The correct option is A.
Step-by-step explanation:
A job-order costing system is most appropriate for industries where products are customized or produced in small batches. This method tracks expenses for each individual job, which corresponds to a distinct order or project. Out of the options provided, airplane manufacturing is the best fit for a job-order costing process because each aircraft is often custom-built to the client's specifications, leading to a unique set of costs that need to be tracked for each job.
In contrast, natural gas processing, food processing, and fertilizer production are more likely to benefit from a process costing system, which is used when products are homogenous and produced in a continuous flow. In these industries, costs are accumulated over a period and then allocated evenly across units of output.
It is crucial to choose the correct costing method to ensure accurate accounting, which helps in setting the right prices, controlling expenses, and making sound financial decisions. Different production processes and industries will have different cost structures—what works for a car manufacturer will not necessarily be effective for a software company or a fast-food restaurant.