How does job-order costing differ from process costing?
(1) Under job-order costing, cost is accumulated by each job.
(2) Under process costing, cost is accumulated by each department.
(3) Company which provides customized service prefers process costing,
(4) Company which produces identical products prefers job-order costing.
A. Statement (1) is correct.
B. Statement (1) and (2) are correct.
C. Statement (1), (2) and (3) are correct.
D. Statement (1), (2) and (4) are correct.
E. All the statements above are correct.