Which of the following products probably would be manufactured using a job order costing system?
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Correct Answer (A) Company Business cards
Explanation and reason
All the other products such as Paper, Computer monitor and baseball are generally produced in batches whereas and are homogeneous in nature. While on the other hand Company business cards is a specific job and is Unique in nature. Job order costing is used when production of a custom product is done. Company business cards are custom made, designed as per the specification of the Customer.
Record of Material, Labor and Overheads used in every job is calculated to know the full cost and profit on a particular job.
Conclusion
Out of the given examples, Company business would probably be manufactured using a Job Order Costing System.
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