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Distinguishing between job order costing and process costing

Would the following companies most likely use job order costing or process costing?

e. A landscape contractor

Short Answer

Expert verified

Landscape contractors were most likely to use a job-order costing system.

Step by step solution

01

Contractors

Contractor means the person or the company who works for other people on a contract basis. They are not involved in the activity which produces a large number of products for the general public. They provide customer-specific services.

02

A landscape contractor

A landscape contractor provides the customer-specific job. Hence, they use the job order costing system to compute the cost of the contract.

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