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Job-order costing is used by companies with job-shop operations orbatch-production operations. In a job-shop environment, products are manufactured in very low volumes or one at a time. Examples of a job-shop environment include feature film production, custom house building, ship building, aircraft manufacture, and custom machining operations. In a batch-production environment, multiple products are produced in batches of relatively small quantity. Examples include furniture manufacture, printing, agricultural equipment, and pleasure boat production.
Managerial Accounting: Creating Value in a Dynamic Business Environment which includes Connect. Ronald W. Hilton 10th Edition