Question

Question 4 2 pts Ajob order cost system would most likely be used by a company that makes breakfast cereal O personal computer O pencils O Disney movie

Answer 1

Solution: D option; Disney Movie

Job Order Cost System is a type of system in which the cost of a particular order is being monitored for decision making. When a company accept an order of a particular customer than it monitors cost incurred on such a particular job order specifically. This system of cost monitoring is called Job Order Cost System.

When we look into the entertainment industry, including film studios, can create a separate job order cost sheet for each film that studio creates. Hence Disney Co. can use a job order cost system most likely.

But when we look into other three options, Breakfast cereal, Personal computer, Pencil; these are not personalised to customer-specific or there is not any separate job exists. All products are being made in lot basis without knowing the customer and supplied to different customers having similar demand.