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Boeing and Bechtel: Job-order costing

Why do Boeing and Bechtel use job-order costing?

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Boeing makes commercial aircraft and Bechtel is a manufacturer of refineries and related equipment. They both make very large custom products for customers. That is, they do not have "inventory" in stock for customers to choose. They "bid" on jobs. That is, they are given a request for proposal, showing what the customer needs with exact specifications for the construction and ingredients to be used and Boeing and Bechtel submit a bid for the business with a quote for the job. If they are ...

Solution Summary

Your tutorial is 334 words and explains why these firms must have job order costs.