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A business that makes custom chairs would use what kind of costing system? Group of answer...

A business that makes custom chairs would use what kind of costing system?

Group of answer choices

partial costing

process costing

job order costing

custom design costing

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Answer #1

Job order costing.

Yes, job costing is the costing system that a business producing custom chairs will be using. Under job costing it will be easier to allocate costs to each of the product the company manufactures. As a customised manufacturer wi have different consumption of material labour and other costs, it is easier for such companies if they use job order costing. Process costing on the other hand will be useful when a manufacturer has a lot of processes to complete manufacturing a single product.

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