Question: NanoDevices, typically using a process costing system for its sensors, has received a special project order from an automotive company to produce and deliver 15,000

NanoDevices, typically using a process costing system for its sensors, has received a special project order from an automotive company to produce and deliver 15,000 sensors. Can NanoDevices adopt a job-order costing system for this special project while continuing with a process costing system for its regular production?

Requirement:

  1. Compare the process costing system with the job-order costing system.
  2. Assess whether job-order costing would be appropriate for the special project.

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