Final answer:
An organization is more likely to use a job-order costing system if it produces customized products on a per-order basis, as this system allows for detailed tracking and allocation of costs for each unique job. In contrast, process costing is suited for homogeneous and continuous production benefiting from economies of scale.
Step-by-step explanation:
The major characteristic of an organization that would be more likely to use a job-order costing system of accumulating product costs rather than a process costing system is customization of products. A job-order costing system is applicable in environments where products are distinctive and made to order, such as in custom furniture manufacturing, specialized construction projects, or bespoke tailoring. These businesses produce goods based on specific orders from customers, and each order can vary significantly in materials, labor, and overhead costs, necessitating a unique calculation of costs for each job.
In contrast, a process costing system is ideal for companies that have a more continuous and homogenous production process, such as in food processing or chemical manufacturing. These companies benefit from economies of scale, where an increase in production volume leads to a decrease in per-unit costs. Such businesses tend to have technology-driven assembly lines or processes that are less labor-intensive in high-wage economies and may shift towards more labor-intensive processes in lower-wage countries.
Furthermore, when inputs become more expensive, firms using a job-order system can adjust their production methods and input mix for each job, reflecting the changing costs directly in job pricing. On the other hand, process costing averages out the costs over many identical units, which can be less responsive to changes in input costs on a per-job basis.