Reference no: EM132473610

Problem 1: Why would a company use a job order costing system and not a process costing system? Assume you have a shop that makes nice furniture. One customer wants you to make them a table. Another customer wants you to make them a chest of drawers. You want to know what it costs to make each item. So, you keep track of the cost of each item separately. If so you are using a job order costing system. If instead you are making 500 tables that are exactly the same, then you would use a process costing system.