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    When a hybrid system may be better than either pure job or pure process?

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    There are many situations where it may be best for a company to use a hybrid system that combines attributes of both systems. Describe such a situation and discuss how the hybrid system may be better than either pure job or pure process systems.

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    Job costing assigns all the cost to individual jobs. Process costing treats all units the same, assigning units all the same costs as if they were all interchangeable units. A hybrid system is typically used when the products are similar for a group of units, such as a batch or all the units in a department, but the groups differ from each other. So, all the residential loans could be treated the same (process costing) and the ...

    Solution Summary

    Your discussion is 230 words and a reference and gives several examples of situations whether hybrid costing would be needed and why. Examples include banking and manufacturing. The response also explains the difference between process and job costing.