Question

Under a job order system, the company assigns costs to each job, or each batch of goods, to fill a specific customer order or replenish inventory.

1. true
2. false

Answer 1

A job order costing system accurately assigns costs to each job or batch of goods, which is true and is beneficial for businesses with customized products or diverse supplier connections.

Step-by-step explanation:

In a job order costing system, it is indeed true that a company assigns costs to each individual job or batch of goods. This approach is used typically to fill a specific customer order or to replenish inventory. Each job can be separately identified and costs can be attributed to it, allowing for precise tracking of production expenses.

This method is particularly useful in businesses where products are customized or where different batches of products are distinct from one another, such as in large manufacturing factories or restaurants with diverse connections to various suppliers for food, furniture, kitchen equipment, and more.