Answer:
False
Step-by-step explanation:
False.
Job order costing is a costing system that is appropriate for companies that produce custom-made or unique products or services. It is used when a company produces goods or provides services that are distinct and different from each other.
For companies that produce pencils, which are typically standardized and mass-produced items, a different costing system called process costing would be more suitable. Process costing is used when a company produces homogeneous products in a continuous, repetitive manner.
Therefore, job order costing is not appropriate for companies that produce pencils, but rather process costing would be the appropriate costing system for this type of manufacturing operation.