Below each specified type of costing system,

provide one paragraph that strongly supports and justifies

your selection.

For each of the following descriptions

(scenarios), please indicate whether that organization would

best be served by a JOB ORDER COSTING SYSTEM or a

PROCESS COSTING SYSTEM

1. Plattesburg Lockers, a retail meat store and butcher shop in a small midwestern town, has purchased a vacant store nearby and is going to set up a separate company in that building to make

(year-round) and market one type of specialty ethnic-style sausage

that the town is known for serving during its annual harvest festival.

It is anticipated that the firm will only produce this one type of

sausage in the store/plant and that demand from the surrounding

region will keep that operation busy all year long for the foreseeable

future of at least three to five years. While sales are high during the

annual harvest festival, sales and production are very steady and

significant throughout the other months of the year. 2. Maxi Moulding company produces crown moulding from a special variety of cedar trees that grows near their town. Business has grown to the point where the two owners of the firm stay busy

six days a week, all year long, producing a steady supply of one

specific style of moulding to fill a large, longstanding order contract

covering multiple years from a national home improvement store

chain that likes the firm's work because of the consistency they

achieve in meeting the specifications for identical product

production with their product output. 3. Jane Gooddogg, a veterinarian, has opened a pet emergency

clinic for the medical needs of pets during evenings, weekends,

and holidays when the local veterinary offices are often closed. 4. Vic Vroom is known throughout the region as having the best

shop for putting dual exhaust systems on pickup trucks and other

vehicles. He purchases components, but configures the overall

exhaust system according to the type of vehicle, the use of the

vehicle, and the vehicle owner's preferences. 5. Zestful Slumber is a small, midwestern manufacturer of pillows. They run an assembly line staffed by talented seamstresses and pillow packers from the surrounding communities and rural areas. To try and ensure stable employment for its workforce, the company specializes in only two types of pillows and tries to keep its assembly line running at nearly full capacity for five workdays a week all year long. The firm has a large warehouse that can hold any excess production during sales slumps. The warehouse also provides a buffer inventory to cover any unexpected jumps in sales.