Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Service Company vs. Merchandising Company

Financial Accounting

4. Merchandising Operations

Service Company vs. Merchandising Company

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which type of company is most likely to use job-order costing to track the costs of individual projects or batches?

A merchandising company that sells identical products purchased from suppliers

A service company that provides customized consulting projects

A merchandising company that operates a chain of retail stores

A service company that offers standardized online courses

Previous problemNext problem

Verified step by step guidance

Understand the concept of job-order costing: Job-order costing is a system used to track costs for individual projects or batches, typically when the products or services are customized or unique.

Analyze the characteristics of each type of company mentioned in the problem: Merchandising companies generally sell identical products purchased from suppliers, which do not require tracking costs for individual projects. Service companies offering standardized online courses also do not require job-order costing as their services are uniform.

Focus on the service company providing customized consulting projects: This type of company deals with unique, tailored services for each client, making it necessary to track costs for individual projects using job-order costing.

Compare the suitability of job-order costing for each company type: Job-order costing is most appropriate for companies that deal with customized or unique products or services, as opposed to standardized or identical offerings.

Conclude that the correct answer is the service company providing customized consulting projects, as it aligns with the need for job-order costing to track costs for individual, tailored projects.