Question

Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.

a) Job Order Costing
b) Process Costing
c) Both
d) Neither

Answer 1

The characteristics listed can be matched to either job order costing or process costing. Job order costing matches characteristics such as individual jobs or batches and costs tracked by job, while process costing matches characteristics such as mass production and costs tracked by process or department.

Step-by-step explanation:

The characteristics listed can be matched to either job order costing (a) or process costing (b). Let's match them:

1. Individual jobs or batches - Job Order Costing
2. Mass production - Process Costing
3. Similar products - Process Costing
4. Customized products - Job Order Costing
5. Costs tracked by job - Job Order Costing
6. Costs tracked by process or department - Process Costing
7. Direct materials can be traced to individual jobs - Job Order Costing
8. Direct materials cannot be traced to individual units - Process Costing

Based on the matching results, the answers are as follows:

• Individual jobs or batches - Job Order Costing
• Mass production - Process Costing
• Similar products - Process Costing
• Customized products - Job Order Costing
• Costs tracked by job - Job Order Costing
• Costs tracked by process or department - Process Costing
• Direct materials can be traced to individual jobs - Job Order Costing
• Direct materials cannot be traced to individual units - Process Costing