Asked by Mariah Rodriguez on Jun 07, 2024
Verified
Home construction
A) Job order costing
B) Process costing
Job Order Costing
An accounting method used to track costs and evaluate the profitability of custom jobs by accumulating the costs associated with a specific customer order.
Home Construction
The process of building residential homes, including planning, design, construction, and sale of new homes.
- Determine the suitable costing system for various production settings.
Verified Answer
AA
Angelina Angelina1Jun 13, 2024
Final Answer :
A
Explanation :
Home construction is a unique product or service that is completed through a series of different activities, meaning it would be best suited for a job order costing system. Each home constructed is a unique job with specific materials, labor, and overhead costs that need to be tracked individually.
Learning Objectives
- Determine the suitable costing system for various production settings.