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Which of the following are the essential characteristics of job-order costing?

a.Homogeneous products and products that incur different costs
b.Wide variety of unique products and products that incur different costs
c.Homogeneous products and products that incur the same costs
d.Wide variety of unique products and products that incur the same costs

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Final answer:

The essential characteristics of job-order costing are a wide variety of unique products and products that incur different costs, which is especially applicable in custom manufacturing, construction, and professional services.

Step-by-step explanation:

The essential characteristics of job-order costing are seen in environments that produce a wide variety of unique products, where products incur different costs. This contrasts with process costing, where products are more uniform and the costs per unit are similar.

Job-order costing is applied in situations such as custom manufacturing, construction, or professional services, where each job is distinct and may require a different combination of materials, labor, and overhead. Hence, costs are tracked to specific jobs so that profitability and efficiency can be assessed for each individual project rather than for a series of identical or similar products.

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