Question

Which of the following would not be considered a job in a service firm that uses job-order costing?

A. A repair job at an auto repair shop
B. A patient in a hospital
C. The tax department in an accounting firm
D. A client at a law firm

Answer 1

The tax department in an accounting firm would not be considered a job in a service firm using job-order costing, as it typically provides more standardized services, unlike other examples like repair jobs at auto repair shops, patient care in hospitals, or client services at law firms. The correct option is A. A repair job at an auto repair shop

Step-by-step explanation:

A job that would not be considered in a service firm using job-order costing is the tax department in an accounting firm. Job-order costing is designed for businesses that provide custom products or services to customers on a job-by-job basis. In this system, direct and indirect costs are tracked for each specific job. Examples of service jobs where job-order costing is used include:

• A repair job at an auto repair shop
• A patient in a hospital
• A client at a law firm

However, the tax department in an accounting firm would typically use a form of costing that is not job-order, such as process costing or operating costing, since the services are more standardized and not customized to the same extent as the other examples. The correct option is A. A repair job at an auto repair shop