Question

From a list of companies below select one that would use a job-order costing system. Manufacturer of swimming pool chemicals. Manufacturer of custom hot tubs and spas. Manufacturer of ceramic tile. Producer of yogurt. Home builders Manufacturer of custom tool sheds. Manufacturer of papers clips. Manufacturer of balloons. Manufacturer of custom emergency rescue vehicles.

Answer 1

Companies that would use a job-order costing system include:

1. Manufacturer of custom hot tubs and spas.

2. Home builders.

3. Home builders Manufacturer of custom tool sheds.

4. Manufacturer of custom emergency rescue vehicles.

Step-by-step explanation:

One common feature among these manufacturers is that their products are custom-made. Job-order costing system is suitable for the manufacture of individual products and not for mass production of similar items. Each product is unique and will usually meet the specifications and taste of each customer. Since their prices are not for the mass market, their costs are usually accounted for differently using the Job-order costing system.