Job Order Costing System: What Products are Most Likely to be Manufactured Using This System?

Which of the following products probably would be manufactured using a job order costing system?

a. Computer monitors

b. Baseball bats (not correct answer)

c. Company business cards

d. Paper

Answer:

The product that is most likely to be manufactured using a job order costing system is company business cards.

Job order costing is a cost accounting system that is used to determine the cost of producing a specific product or service. This method is ideal for products that are unique and require customization. Business cards are a good example of this because each card can be designed differently and have varying quantities.

Computer monitors and paper, on the other hand, are mass-produced products with uniform characteristics that would be better suited for a process costing system. Baseball bats could potentially be manufactured using job order costing if they were customized for specific customers or teams. Overall, the nature of the product and the level of customization required are the key factors in determining which costing system is appropriate.