1, Week DQ2
When is it appropriate to use process cost systems versus job-cost systems? Companies use costing to keep track of where in the production and distribution process their money is being spent. In order to control these types of costs, a company must understand them. Choosing the appropriate type of costing is important to a company, depending on industry and the product that they produce. Process costing is better suited for a company that makes uniform homogeneous or products. Process costing is a process that averages the costs over all incoming units to the per-unit cost. Process costing is tracked using a WIP (work-in-process) account on each department. A job-costing system is better suited for a company that manufactures products where orders are in differentiated batches.
Compare and contrast the differences between the two and cite real-life examples that are different from those in the text