Answered: ABC jewelers makes custom jewelry for…

ABC jewelers makes custom jewelry for celebrities. Would you expect the company to use a job order or a process cost accounting system? Explain?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2Q: Would a pharmaceutical manufacturer use process or job order costing? Why?

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

ABC jewelers makes custom jewelry for celebrities. Would you expect the company to use a job order
or a process cost accounting system? Explain?

Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.

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