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Operations vs. Process Costing
Question A
• What is the difference between operations costing and a process costing system? How does a company decide whether to use a job order or a process cost system?
Question B
• How does the treatment of costs differ in ABC systems as opposed to traditional cost systems?150 words minimum.
Shokun Steel Co. owns many steel plants. One of its plants is much older than the others. Equipment at that plant is outdated and inefficient, and the costs of production at that plant are now two times higher than at any of Shokun's other plants.
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