Question

Dr. Durango uses job order costing in her dental practice. Some services like root canals involve multiple visits, often over more than a month's time.

a) True
b) False

Answer 1

The statement that Dr. Durango uses job order costing for services, such as root canals that span multiple visits, is true. Job order costing is appropriate for customized services like those in a dental practice.

Step-by-step explanation:

The subject of the student's question involves Job Order Costing, a method used in managerial accounting. Dr. Durango uses job order costing in her dental practice. It's a system that assigns costs to specific jobs, which in the context of a dental practice, are services provided to patients. This might include procedures such as root canals which indeed can involve multiple visits over a span longer than a month. Therefore, the statement is true.

Job Order Costing is particularly effective for businesses like dental practices where services are customized to the client's needs, often involving specific materials, labor, and time. Each patient's case is unique necessitating a tailored approach and individual cost tracking which is what job order costing allows.