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The Coca-Cola Company uses a job-order costing system. True or False: Job-order costing uses the actual direct materials cost of the job, the actual direct labor cost of the job, and the manufacturing overhead cost applied to the job.

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Answer: In managerial accounting, there are two general types of costing systems to assign costs to products or services that the company provides: “job order costing” and “process costing”. Job order costing is used in situations where the company delivers a unique or custom job for its customers. Every customer is treated uniquely and delivered products to specifically suit their individual needs.

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