Question

The companies tend to apply Job-Order costing when:? A/ Many different products are produced each period....

The companies tend to apply Job-Order costing when:?

A/ Many different products are produced each period.

B/ Asingle product is produced during the year.

C /A company wants to increase the cost of the product/s.

D/ The customer wants a high quality product.

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Answer #1

Option A is correct i.e.The companies tend to apply Job-Order costing when many different products are produced each period.

Job order costing is applied when a company is manufacturing different products during each period which are significantly different from each other.

Hence, all other options given are incorrect, since job costing is not applied when a single product is produced during the year, and not to increase the cost of the product and not even because the customer wants a high quality product.

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