Discussion Question: No introduction or conclusion. I do need references!
Costing systems provide information that is used for a large variety of business decisions including planning production of goods and services, pricing products, and controlling associated costs of production. Thus, the choice of an appropriate costing system is a key underlying foundation for good decision making. In a response of 400-600 words address the following questions:
- In what type of situation would a company use multiple cost accounting systems?
- What factors should a company take into consideration in deciding whether to use job order costing or process costing?
- Describe two products or services that might use both process and job order costing methods to determine the cost of a finished unit.
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