Question

A job order costing system does which of the following? Select one: A. Is used to determine period costs in a service company B. Is used to determine unit costs when products are manufactured in a continuous flow process C. Allocates manufacturing costs to individual jobs to determine unit costs D. Both A and B E. None of the above

Answer 1

Answer: C. Allocates manufacturing costs to individual jobs to determine unit costs

Step-by-step explanation:

Job order costing is used to identify the cost of producing a single units of a good. It is usually used by small to medium scale companies who produce per good or by companies that specialize in the production of a custom goods and services.

Under job order costing, manufacturing costs are allocated to individual jobs in order to determine what the individual jobs cost so that an appropriate selling price can be given.