Question

Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.

j. A governmental agency that takes bids for specific items it utilizes where each item requires a separate bid.

Short answer

Answer:

Job order costing system is used by the companies that take bids for specific items, where each items require separate bids.

Step-by-step solution

Step-by-Step Solution:

Step 1: Job order costing system

The companies that work on assignment basis or that manufacture the unique or specifi item on deman of client, uses the job order costing system to identify the cost for each different item of activity.

Classification of costing system according to the characteristics

A governmental agency that takes bids for specific items uses the job order costing system because the agency take different bid for different project. The cost of the product is based on job basis. Hence, the company uses the job order costing system for determining the costing of items.