Job Costing Tracks Individual Custom Jobs

Steps:

• Define job costing: accumulates costs for specific, unique jobs rather than averaging.
• Evaluate statement 1: false, as averaging applies to process costing for mass production.
• Evaluate statement 2: true, costs are traced and charged to each individual job.
• Evaluate statement 3: true, jobs are typically custom-made to customer specifications.
• Select pair: statements 2 and 3 match job costing characteristics.

Why C is correct:

• Job costing, per accounting standards, assigns costs per unique job for customized production (e.g., FASB guidelines on cost accumulation).

Why the others are wrong:

• A: Includes false averaging (1) and ignores individual charging.
• B: Includes false averaging (1) and false non-custom production (4).
• D: Includes false non-custom production (4), as job costing requires customer-specific jobs.

Final answer: C