Question

Which of the following is a key feature of job-order costing?

The costs are assigned to one or more production processes.
The products considered lose their identity as they are a part of mass production.
The products considered are all homogenous in nature.
The cost of one product differs from that of another product.

Answer 1

A key feature of job-order costing is that the cost of one product differs from that of another product. Job-order costing tracks the costs of producing a specific job based on its unique characteristics.

Step-by-step explanation:

A key feature of job-order costing is that the cost of one product differs from that of another product. Job-order costing is a costing system used by companies to track the costs of producing a specific job, such as a custom-made product or a specialized service. In job-order costing, costs are assigned to each job individually based on its unique characteristics, rather than being averaged across all production processes like in process costing.