) Some companies use process costing and some use job-order costing. Which metho
ID: 2377917 • Letter: #
Question
) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:i. Specialty coffee roaster (roasts small batches of specialty coffee beans)
ii. Custom aircraft builder
iii. Brick manufacturer
iv. Microbrewery that produces a number of different beers
v. Steel company making chain link fences from iron ore
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing
Explanation / Answer
i. Specialty coffee roaster (roasts small batches of specialty coffee beans)--process costing ii. Custom aircraft builder--process costing iii. Brick manufacturer---job-order costing iv. Microbrewery that produces a number of different beers----process costing v. Steel company making chain link fences from iron ore--job-order costing answers are indicated ahead of statements.. PLEASE RATE
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