Reference no: EM132482003 , Length: Word count: 300

Point 1: 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.