Question

When can bakery might use job order costing?

When can bakery might use job order costing?

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Answer #1

A job-order costing system works best for products that are unique and produced one at a time or for service businesses, such as software professionals or accountants. In this type of costing system, costs for materials, labor, and overhead are accumulated for each custom order.

a bakery can use this type of costing on special occasions like when-

received a order of 5 tier wedding cake or a special theme cake for birthday.

so in both of these acse all the cost will be allocated to this specific order

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