 In this presentation, we will take a look at multiple choice questions related to a job cost system. First question. Which industry would use a job cost system? A. Crackers production. B. Candy production. C. Soda production. D. Soap production or E. Custom jewelry. Let's go through this again using the process of elimination. Which industry would use a job cost system? Now when you think about a job cost system, really what we're thinking of is a comparing and contrasting between a job cost and process cost system. And when the main thing between those two systems typically is going to be is there diversification in the types of things that we're making? There is probably going to use a job cost system. If there isn't, if they're all totally the same, then we're probably going to try to use a process cost system and support accounting instruction by clicking the link below, giving you a free month membership to all of the content on our website broken out by category further broken out by course, each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files, and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. And thereby lower the cost. So the job cost is going to apply to specific inventory because they're different and the process cost is going to apply to the process because all the inventory is the same. So if we're taking, if we have crackers that we're making, then that seems like they're all the same. So we're probably not going to use unless they're like custom crackers that were made and probably not that and then candy production. Again, unless it's going to be like really custom customized like type of type of shop, then probably not. If we're talking about just normal candy taffies and stuff, it's probably that they're all the same and we're working on making them, you know, as cheap as possible. Soda production, you know, same type of thing all the sodas, pretty much the same, we're not going to apply to a job of soda. Again, unless we're doing some type of customization, some kind of strange soda, not mass production. And then soap, again, same kind of thing we would think they're soap. I would think that, you know, most of it would be the same unless we're doing some kind of specialty type of thing. And that leaves us with custom jewelry and basically anything that says custom in it is probably going to be the answer in this type of question if we're looking for a job cost versus a process cost. And that's really always the case when we're comparing and contrasting when we're working with a job cost system, we're really pretty much contrasting it to a process cost system. Next question, which industry would use a job order costing system, a taffy candy production, B oil refinement, C cement, D custom surfboards, E paper clips. Let's go through this again using the process of elimination. Which industry would use a job order costing system. And again, if you're thinking about this, you're pretty much contrasting it in our heads whenever we think there's two types of costing systems, typically a job cost and a process cost, we would typically use a job cost when there's differentiation in the types of inventory we are making as opposed to a process cost, where everything is all the same. And therefore we apply the cost by process rather than by individual job. So if we if we think through that, we're going to say a taffy candy production. And if we're talking about just normal, like, you know, the mass productions, it's all done by one machine, all the taffy is exactly the same, typically, or that's the goal of it. And therefore that's probably a process cost rather than a job cost. So probably not that oil refinement. That's pretty much like one of the most classic kind of examples of a process cost system. Because again, our goal is to make everything really standardized, we want the end product to be as standard as possible. No differentiation, you know, in the end product generally, we want we want a consistency, cement, I'm assuming cement production. And that would be the same kind of thing, we don't really want differentiation in the cement, we want it all to be the same, we want one production process. So I would think that would be a process cost. D says custom surfboards. And that is customized. So that means there's going to be differentiation. Anything that says custom is pretty much probably going to be a job cost system. So we're going to have to say, yeah, that's probably a job cost. And then he says paper clips. And I would assume that all paper clips are going to be made pretty systematically, they all want to be the same type of paper clip and therefore would be using a process cost rather than a job cost. So that leaves us with the final answer, which industry would use a job order costing system D custom surfboards. Next question, production of customized products or services for each customer uses either a a customer production system, be job order production, see just in time production, D first in first out production and E process production. Let's go through this again using the process of elimination, production of customized products or services for each customer uses a customer production system. I mean, that sounds kind of reasonable. It sounds right. I'll keep it for now. B says job order production. And that's that's the kind of system we're working on when these questions. So I'll keep that one for now. C says a just in time production system. And, you know, that's possible that we could be using a just in time. I'll keep that one for now. D says first in first out production. That, you know, that might be the way that we kind of track the orders, but usually first in first out deals with a merchandising company, how we track the cost of the merchandising company going in and out. So it doesn't usually apply to the job costing system except for like the materials portion only. So I don't think it's that and then he says process production. And that might be like a process cost system. And it's probably not that because we're doing some customization. So I don't think it's a process cost system. So let's go through it again. Production of customized products or services for each customer uses either a custom customer production system job order production or just in time production of those three, I would think it would be B because we're basically working on a job order production type of problems here. Now a I don't think it's going to be the answer because it sounds nice, but I don't think it's an actual term that we're really using typically in in the accounting process. So it sounds kind of like a made up term that sounds plausible customer production system. So I don't think it's a C is clearly something we've probably heard of just in time production. And it may be the case that just in time production is being used that does allow us for some more customization. But this really has to do with with how fast we put things together, how we put together our system in our process, and not so much to do with with the type of system we're having. So we could use a just in time system, not necessarily we are most likely because of the customization, however, using a job order production. So final answer, production cost cost production of customized products or services for each customer uses be job order production.