Question

In each period, job costing divides the total cost of producing an identical or similar product by the total number of units produced to obtain a per-unit cost.

a-true
b-false

Answer 1

Job costing divides the total cost of producing an identical or similar product by the total number of units produced to obtain a per-unit cost.

Step-by-step explanation:

False.

In job costing, the total cost of producing an identical or similar product is divided by the total number of units produced to obtain a per-unit cost. This method is used when each unit produced is unique or requires specific customization. Each unit is assigned a separate cost based on the materials, labor, and overhead costs associated with producing that unit.

For example, let's say a furniture company produces custom-made chairs. Each chair will have different materials, labor, and overhead costs depending on the specifications provided by the customer. The total cost of producing all the chairs would be divided by the total number of chairs to calculate the per-unit cost.