Indicate whether job order or process costing most likely would be appropriate. You may add an...

Indicate whether job order or process costing most likely would be appropriate. You may add an explanation.

Printer that produces custom posters and pamphlets

Movie studio

Hospital

A tire manufacturer

A custom furniture manufacturer

A paint manufacturer

Expert Solution

Ans: Job costing is method of recording cost of specific job rather than process, here, the costing of each job is being tracked, while on the other side process costing apportioning the cost of large quantity of similar type or same type of product.

1) Printer that produces custom posters and pamphlets: Job costing would be appropriate here since it is production of custom posters which may not be huge in number and definitely will not be similar hence process costing method can not be used, jo costing can be used here.

2) Movie studio: Here also job costing method would help since each different movies comes as different project and cost can be tracked well through job costing method.

3) Hospital: In hospital, process costing can be used since patients come in large number in hospital with more or less a similar kind of disease hence process costing may be helpful here.

4) A tire manufacturer: A tire manufacturer manufactures large number of homogenous tyres, hence process costing can be used here.

5) A paint manufacturer can also use process costing methods since paint will be manufactured at large level and for same composition hence process costing method is advisable here.

ekkarill92 answered 1 year ago

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