Final answer:
Job order costing is true to provide more precise costing for custom jobs than process costing, as it assigns costs to each specific job, accommodating for the unique resources and labor used.
Step-by-step explanation:
The statement that job order costing provides more precise costing for custom jobs than process costing is True. Job order costing is indeed more suitable for custom, made-to-order products or services because it tracks the costs of each individual job. In contrast, process costing is used for mass production where the products are homogeneous and it averages the costs over all units produced.
Job order costing assigns costs to each specific job, such as a custom furniture piece, which may require different amounts of materials, labor, and overhead compared to other jobs. This system provides a detailed record of the costs associated with a particular customer's order.
Conversely, process costing homogenizes the costs and applies them uniformly across multiple units of products that are identical or very similar, such as chemicals or food products. Therefore, process costing would not accurately reflect the cost of custom jobs that each have unique specifications and varying resource requirements.