A hybrid costing system would be most appropriate when:

A) A manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs.
B) Large quantities of identical products are being produced.
C) The volume of production is low and costs are high.
D) There is no standardization of units of production.
E) All of these would necessitate a hybrid costing system.

Question

Caleb Mabins · Accepted Answer

Final Answer : A, Explanation :  A hybrid costing system would be appropriate when a manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs. This would require using elements of both job costing and process costing to accurately determine the cost of production for each unique product or service. This approach would allow the manufacturer to effectively control costs while still providing customized products or services to their customers. The other options listed do not necessarily require a hybrid costing system.

Definitions

Learning Objectives

Learning Objectives

Related questions