This week we are studying job order costing. In order to better understand what job order costing is, you will also need to have a basic understanding of process costing. Please briefly explain these two types of costing systems and provide us with an example of a real-world company that would use job order costing and one that would use process costing. Requirement 2: Please distinguish between prime costs and conversion costs and provide us with an example of each. Requirement 3: Please explain the difference between a prime cost and a product cost and provide us with an example of each.

Question
This week we are studying job order costing. In order to better understand what job
order costing is, you will also need to have a basic understanding of process costing.
Please briefly explain these two types of costing systems and provide us with an
example of a real-world company that would use job order costing and one that
would use process costing.
Requirement 2:
Please distinguish between prime costs and conversion costs and provide us with an
example of each.
Requirement 3:
Please explain the difference between a prime cost and a product cost and provide us
with an example of each.
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Transcribed Image Text

This week we are studying job order costing. In order to better understand what job order costing is, you will also need to have a basic understanding of process costing. Please briefly explain these two types of costing systems and provide us with an example of a real-world company that would use job order costing and one that would use process costing. Requirement 2: Please distinguish between prime costs and conversion costs and provide us with an example of each. Requirement 3: Please explain the difference between a prime cost and a product cost and provide us with an example of each.