Costing Methods: Compare the job order and process costing methods, and explain how each of these can be applied to the company.

• How could the costs differ if one method is chosen over the other?

• Factory Overhead: Outline possible indirect or overhead costs the company may need to account for, and identify the type of costing the company might use for these costs.
  • If the company decides to use activity-based costing (ABC), what are some activity bases (cost drivers) it might use to allocate these costs?
• Recommendation: Based on your analysis, recommend a costing method for the company, and explain why you think this method will work best for the business.

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Answer rating: 100% (QA)

Comparison of Job Order and Process Costing 1 Job Order Costing Definition Job order costing is a costing method used when products are manufactured based on specific customer orders or projects Appli... View the full answer