Asked by Aubin Guédon on Jul 30, 2024

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Custom-made goods would be accounted for using a process costing system.

Custom-Made Goods

Products that are specially designed and manufactured according to the specifications and requirements of a customer.

Process Costing System

A process costing system assigns costs to masses of similar units, making it an effective method for organizations that produce goods in continuous processes, like chemicals or fuel.

  • Determine the fittingness of utilizing process costing in diverse production situations.
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ZK
Zybrea KnightAug 03, 2024
Final Answer :
False
Explanation :
Process costing system is used for mass-produced standardized goods. Custom-made goods are produced in low quantities and require specific attention to individual customer's requirements, which makes them incompatible with process costing. A job costing system is more appropriate for custom-made goods as it allows for tracking of costs and revenue for each specific order.