For which of the following manufactured products would job costing be more appropriate than process costing? Select one: A. Liquid soap B. Paint C. Designer dresses sold to celebrities D. Chemicals

The correct answer is C. Designer dresses sold to celebrities.

Explanation:

A fundamental prerequisite in a work order costing system is the possibility of being able to segregate or quantitatively identify the product being manufactured in the factory or workshop, at any given time. This system allows to separately collect each of the cost elements (direct materials, direct labor and indirect manufacturing costs), for each job or work order in process.

The work order costing system is the most appropriate when manufactured products differ in terms of customer requirements or specifications, and the quoted price is closely associated with the estimated cost. The cost incurred in drawing up a specific work order should be allocated to the items produced.

In a work order costing system the three basic cost elements (MD, MOD, CIF) are accumulated according to the numbers assigned to the work orders.