A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing.

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Minouche Kaufmann-Perry · Accepted Answer

Final Answer : True, Explanation :  Process costing is more suitable for companies with homogeneous products, such as flour production, where the cost of each unit is similar. On the other hand, job-order costing is more appropriate for companies that manufacture customized or unique products, such as leather jackets.

A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing.

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