Asked by Oscar Gordillo on Jun 07, 2024
Verified
The job order costing system is not used by service organizations.
Job Order Costing System
An accounting system used to assign costs to specific jobs or batches, typically useful in manufacturing or service industries with unique or custom orders.
Service Organizations
Service organizations are businesses that primarily provide intangible products, such as services or expertise, to customers.
- Learn how job order costing is tailored and implemented in service industries.
Verified Answer
JH
Jacob HospelhornJun 12, 2024
Final Answer :
False
Explanation :
The job order costing system can be used by service organizations, although it is more commonly associated with manufacturing firms. Service organizations that may use job order costing include hospitals, law firms, and construction companies. The system allows organizations to track the costs associated with specific jobs or projects, which can help in pricing decisions and identifying areas for cost savings.
Learning Objectives
- Learn how job order costing is tailored and implemented in service industries.
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