acc560 week 2 discussion 2

acc560 week 2 discussion 2 -...

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Discuss the factors that a company must consider when deciding whether to use a job  order or a process cost system. What might be the consequences to a company if they  make the wrong choice ? When deciding whether to use a job order or process cost system, a company must consider the  characteristics of product that will be produced, and the differences between these two cost systems.  Job  order costing is normally used in specific, special, heterogeneous products, or custom manufacturing or  servicing, while process costing is better suited to similar, uniform, large-volume products and continuous  process manufacturing.  Examples of industries that use job order systems are custom home builders,  commercial printing companies, motion picture companies, construction contractors, repair shops,  accounting and law firms, hospitals, shipbuilders, and architects. A process cost system is used in 
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acc560 week 2 discussion 2 -...

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