Identify which costing system - job order or process cost - the following companies would use:
(a) Quaker Oats, (b) Ford Motor Company, (c) Kinko's Print Shop, and (d) Warner Bros. Motion Pictures.
Response is 416 words
First, let's describe the differences between job-order costing and process costing and the types of situations where each might be used. What characteristics of each process make it most appropriate for these situations? Then, I'll put these four companies in their spots!
Job Order Costing
This costing method is used when you have products or batches that differ from each other and so each product or batch may have different costs.
Job Order Costing tracks the costs that are assigned to each job. A job can be for many units (like a batch of coffee beans being baked) or one unit (building houses). Direct costs ...
Discussion is 416 words which includes comparing and contrasting these methods in everyday language and then showing how each firm fits into one or the other. The student will know how to do this for other similar assignment after this tutorial.