Which of the Following Organizations Would Be Most Likely to Use

question 151

Multiple Choice

Which of the following organizations would be most likely to use a job-order costing system?

• A)the loan department of a bank
• B)the check clearing department of a bank
• C)a manufacturer of processed cheese food
• D)a manufacturer of video cassette tapes

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Definitions:

Direct Method

A cost allocation method used in cost accounting that directly assigns all direct costs to specific cost objects, such as products or services, without using any allocation for indirect costs.

Service Department

A department within a company that provides essential support services to the production and sales departments, not directly generating revenue.

Assembly Department

A section within a manufacturing facility where components are assembled into final products.

Employee Hours

The total number of hours worked by employees, often used for tracking labor costs, productivity, or workforce planning.