Can standard costing be used in job-order costing? If so, what conditions must exist? If not, explain why
Yes. Firms that use job-order costing can also base their costs on standards. Each job must be fairly similar to each other job. Standards may be used for the prices of material and labor if the jobs use basically the same kind of material and labor. If jobs are homogeneous enough, standards can also be used for materials and labor quantities. Some companies may choose to only use price standards, others only quantity standards, and others may use both price and quantity standards.
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