Answer:
Job-Order Costing versus Process Costing
Types of businesses using job order costing:
a. Hospital services
b. Custom cabinet making
e. Airplane manufacturing (e.g., 767s)
h. Custom furniture making
i. Dental services
l. Auto repair
m. Architectural services
n. Landscape design services
Types of businesses using processing costing:
c. Toy manufacturing
d. Soft-drink bottling
f. Personal computer assembly
g. Furniture making (e.g., computer desks sold at discount stores)
j. Paper manufacturing
k. Nut and bolt manufacturing
o. Flashlight manufacturing
Explanation:
In job order costing, the manufacturer tracks its prime costs to individual products or jobs. This means that the costs of each job can be computed separately because costs are traced to each job. Under process costing, the prime costs are tracked to the department, process or batch, and not to individual products or jobs.
