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job-costing system, process costing & job-order system

1. One of your co-workers says, "I don't know why we spent so much money on this new job-costing system. I can do everything we need on an Excel spreadsheet. If the CFO had listened to me, we could have saved a ton of money." Is your co-worker right? Can a simple spreadsheet take the place of a job-costing system? Explain.

2. What type of company would use a process costing system? What about a job-order costing system? Provide two examples for each type. Why does it matter which system is used?

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1. One of your co-workers says, "I don't know why we spent so much money on this new job-costing system. I can do everything we need on an Excel spreadsheet. If the CFO had listened to me, we could have saved a ton of money." Is your co-worker right? Can a simple spreadsheet take the place of a job-costing system? Explain.

No, my co-worker is not right. A simple excel worksheet cannot replace a job-costing system. In a job-costing system there is an individual allocation of all time, expenses and material to individual jobs or projects. The job-costing system will enable the CFO and the employees to forecast collect, budget and report expenditures and revenues related to identified jobs and projects. This cannot be done easily with a simple spreadsheet. The software ...

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