Question

Job Order vs. Process Costing:

Describe why you feel that job order or process costing would likely be used in EACH of the described businesses.

-A jeweler who specializes in engagement rings

-Honda auto manufacturing

-Campbell’s soup canning

-Disney studios

-A firm that does road repairs

-The BP Amoco refining facility

-Wilson, maker of NFL game-day footballs

-Louisville Slugger, maker of bats for major league baseball players

Answer 1

Job order costing used when manufacture produced product or service on requirements of client . Here company produce product or provide service as per client requirements which may be different for each client.
Example
A jeweler who specializes in engagement rings (ring manufacture as per client requirements)

Disney studios ( video produced on client basis)

-A firm that does road repairs ( repairs depend upon client requirements)

Process costing used for when manufacture include two or more process .

Example
Honda auto manufacturing ( it is include more than one process

Campbell’s soup canning ( more than one process)

The BP Amoco refining facility (more than one process)

Louisville Slugger, maker of bats for major league baseball players ( more than one process)

Wilson, maker of NFL game-day footballs (more than one process)