Final answer:
Statement C is correct; job order costing offers more precise costing for custom jobs versus process costing. It allows detailed tracking of individual job costs, which is not achievable with the averaging approach of process costing, especially for customized jobs.
Step-by-step explanation:
The true statement from the options provided is: C. Job order costing provides more precise costing for custom jobs than process costing. This is because job order costing is a method where costs are compiled for each job individually, which allows for more accurate and detailed tracking of the cost associated with each custom job. In contrast, process costing averages costs over all units produced, which works well for homogeneous products but is less precise for customized jobs.
As for the reference to the firm's decision on production technology based on the change in wages and machine costs, this relates to a company's cost structure and their choice of production methods to minimize costs. As labor becomes more expensive, the firm may shift towards using more machinery if doing so will result in a lower total cost of production. Therefore, based on the examples provided, if wages increase from $40 to $90, while machine costs remain the same, the firm would move from production technology 1 to technology 3, using less labor and more machinery.