Applying Unit and Job Costing in Operations

Steps:

• Recall unit costing (process costing) tracks costs for identical products in ongoing, continuous production like chemicals or oil refining.
• Recall job costing tracks costs for unique, custom jobs or batches, such as custom furniture or special events.
• Match unit costing to continuous operations where products are indistinguishable and costs are averaged per unit.
• Match job costing to special orders where each job requires separate cost tracking for customization.

Why B is correct:

• Unit costing applies to continuous operations for mass-produced identical items (per process costing definition), while job costing applies to special orders for unique work (per job order costing definition).

Why the others are wrong:

• A: Job costing does not apply to continuous operations, which use standardized unit costing.
• C: Unit costing does not apply to special orders, which require individualized job tracking.
• D: Neither applies to special orders; unit costing is for continuous, not custom, production.

Final answer: B