Which of the following statements is true? A. ABC systems provide benefit to manufacturing companies only. Merchandising companies carry only merchandising (finished goods) inventory and service companies generally carry no inventory at all, and therefore, an ABC system would not apply to these companies. B. ABC systems apply equally well to manufacturing and retail-oriented merchandising companies, but not to distribution-oriented merchandising companies, which carry only finished goods inventory, or to service companies, which do not carry inventory. C. ABC systems apply equally well to manufacturing, merchandising and service companies. D. ABC systems apply equally well to manufacturing and merchandising companies, but not to service companies. Service companies generally carry no inventory, and therefore, an ABC system would provide little, if any, benefit.

Job costing includes the point-by-point aggregation of generation costs inferable from precise units. For instance, the development of a handcrafted household item would be represented with an occupation costing system. The expenses of all work dealt with that particular thing of furniture would be recorded on a period sheet and afterward assembled on a cost sheet for that activity.

Likewise, any wood or different parts utilized in the development of the furniture would be charged to the creation of employment connected to that household item.