Asked by Maddie Murch on Jul 06, 2024
Verified
A number of companies in different industries are listed below:
1.Electric utility
2.Frozen orange juice processor
3.Specialty coffee roaster (roasts small batches of specialty coffee beans)
4.Natural gas production company
5.Commercial photographer
6.Contract oil drilling company
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing.
Job-Order Costing
An accounting method that assigns costs to specific jobs or batches, often used for custom orders.
Process Costing
An accounting methodology used in manufacturing environments where the cost of the product is calculated based on the processes it goes through, ideal for homogenous products.
- Contrast job-order costing with process costing, and decide which methodology fits best across diverse sectors.
Verified Answer
SC
Sarah ChamberlainJul 09, 2024
Final Answer :
1.Electric utility; Process Costing
2.Frozen orange juice processor; Process Costing
3.Specialty coffee roaster (roasts small batches of specialty coffee beans); Job-Order Costing
4.Natural gas production company; Process Costing
5.Commercial photographer; Job-Order Costing
6.Contract oil drilling company; Job-Order Costing
2.Frozen orange juice processor; Process Costing
3.Specialty coffee roaster (roasts small batches of specialty coffee beans); Job-Order Costing
4.Natural gas production company; Process Costing
5.Commercial photographer; Job-Order Costing
6.Contract oil drilling company; Job-Order Costing
Learning Objectives
- Contrast job-order costing with process costing, and decide which methodology fits best across diverse sectors.
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