Post 1 - products are manufactured in a very similar way...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Question #1: What are the characteristics of a company that would be more likely to use process costing than job order costing? Hi Professor and class, A process-costing system is a costing system in which the cost of a product or service is obtained by assigning costs to masses of like or similar units. Process-costing systems are used in industries that produce like or similar units which are often mass produced. In these industries,
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: products are manufactured in a very similar way. The companies usually use the same amount of direct materials, direct manufacturing labor costs and manufacturing overhead costs. Industries that use process costing systems are for example: oil refining, pharmaceuticals, tile manufacturing, computer manufacturers, cereal and candy producers. Jack...
View Full Document

This note was uploaded on 07/16/2011 for the course COST ACCOU 410 taught by Professor David during the Fall '10 term at Kaplan University.

Ask a homework question - tutors are online