Costing Systems - COSTING SYSTEMSFINAL COMMENTS .Called...

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COSTING SYSTEMS—FINAL COMMENTS Companies often use a combination of a process cost and a job order cost system. Called  operations   costing , this hybrid system is similar to process costing in its assumption that standardized methods  are used to manufacture the product. At the same time, the product may have some customized,  individual features that require the use of a job order cost system. Consider, for example, the automobile manufacturer  Ford Motor Company . Each vehicle at a given  plant goes through the same assembly line, but Ford uses different materials (such as seat coverings,  paint, and tinted glass) for different vehicles. Similarly,  Kellogg's  Pop-Tarts Toaster Pastries ®  go  through numerous standardized processes—mixing, filling, baking, frosting, and packaging. The 
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