Question

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

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

Answer 1

Job-order costing's key feature is assigning costs to each individual job, with the cost varying between unique products or batches.

Step-by-step explanation:

The key feature of job-order costing is that it assigns costs to each individual job or order. This is fundamentally different from process costing where costs are assigned to processes and not individual jobs. In job-order costing, each product or batch of products is considered unique, and the cost of one product will differ from that of another, often because each job requires different amounts of resources.