Answer :
A job order cost system would be used by a company that makes custom, made-to-order wedding cakes.
What is a job order costing system?
A job order costing system is a costing method that determines the cost of manufacturing each product or job separately.
The circumstances that favor the use of the job order costing system include:
- Production includes a variety of different and customized products.
- There is a need to calculate the cost of producing an individual job.
- Production must match the customer's order and not for stocking for sale.
- The costs are accumulated for each job separately.
- A job is performed according to the customer's specifications.
Thus, a job order cost system would be used by a company that makes custom, made-to-order wedding cakes.
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