Which of the Following Is a Reason Why a Job

question 189

Multiple Choice

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

• A) The cost incurred for each job will differ as per the order specifications.
• B) The direct costs incurred for each job are the same, only indirect costs vary.
• C) The raw materials used have already been accounted for using process costing.
• D) Custom furniture manufacturers produce large quantities of similar products.

---

Definitions:

Product Testing

The process of evaluating an item's performance, quality, and safety before it is released to the market.

Economic Espionage

The act of unlawfully acquiring confidential information about a country's economic policies, practices, or innovations for competitive advantage.

Competitor's Trash

Discarded or overlooked information from rival businesses that can be analyzed for competitive intelligence or market insights.

Proprietary Information

Confidential business information that provides a company a competitive advantage, such as trade secrets, patents, or proprietary processes.