Asked by Stacey Nolasco on Jul 12, 2024
Verified
A number of companies in different industries are listed below:1. Electric utility2. Frozen orange juice processor3. Specialty coffee roaster (roasts small batches of specialty coffee beans)4. Natural gas production company5. Commercial photographer6. Contract oil drilling companyRequired:For each company, indicate whether the company is most likely to use job-order costing or process costing.
Job-Order Costing
Job-order costing tracks production costs individually for each job or project, making it suitable for customized orders or differentiated products.
Process Costing
An accounting method used to accumulate costs in standardized, continuous production processes, assigning average costs to identical product units.
Industry
The sector of an economy concerned with the production and distribution of goods and services within a specific field or area.
- Contrast job-order costing with process costing, recognizing where each is best applied within different industry contexts.
Verified Answer
YM
Yoshi MatthewsJul 18, 2024
Final Answer :
1. Electric utility; Process Costing2. Frozen orange juice processor; Process Costing3. Specialty coffee roaster (roasts small batches of specialty coffee beans); Job-Order Costing4. Natural gas production company; Process Costing5. Commercial photographer; Job-Order Costing6. Contract oil drilling company; Job-Order Costing
Learning Objectives
- Contrast job-order costing with process costing, recognizing where each is best applied within different industry contexts.