Final answer:
The correct answer is E. A job costing system is ideal for a company producing custom jewelry because each piece is unique and requires distinct materials and labor that can be individually tracked.
Step-by-step explanation:
A job costing system is most suitable for a company that manufactures custom jewelry. Job costing is a method used to track the costs associated with producing unique or customized products. With custom jewelry, each piece is made to order and requires specific materials and labor costs, making it an ideal candidate for job costing.
A job costing system is best suited for products that are unique or customized and produced in smaller quantities, where the costs of each job can be tracked individually. These products require a detailed assessment of materials, labor, and overhead costs specific to each job. Companies that produce standardized items in large quantities, such as fruit juice, snack chips, and phone chargers, typically use a process costing system, which averages costs over continuous production runs of similar products. Conversely, a company that makes custom jewelry would best be suited for a job costing system because each piece is often unique and made to order, requiring distinct amounts of materials and labor.