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Which method of determining product costs, job-order costing or process costing,

ID: 2434464 • Letter: W

Question

Which method of determining product costs, job-order costing or process costing, would be more appropriate in each of the following situations?

a. An Elmers Glue Factory
b. A textbook publisher such as Mc-Graw Hill
c. An Exxon oil refinery
d. A facility that makes Minute Maid orange juice
e. A Scott paper mill
f. A custom home builder
g. A shop that customizes vans
h. A manufacturer of specialty chemicals
I. An auto repair shop
j. A Firestone tire manufacturing plant
k. An advertising agency
l. A law office

Explanation / Answer

Job order would be b, f, g, h, i, k, l. Process would be a, c, d, e, j.

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