Reference no: EM132572039

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.

Question 1. In what type of situation would a company use multiple cost accounting systems?

Question 2. What factors should a company take into consideration in deciding whether to use job order costing or process costing?

Question 3. Describe two products or services that might use both process and job order costing methods to determine the cost of a finished unit.