Question

watch the The NASCAR Stock Cars video (How Its Made - 1141 NASCAR Car Bodies [on...

watch the The NASCAR Stock Cars video (How Its Made - 1141 NASCAR Car Bodies [on youtube]).and the BMW video (How a BMW Cars Is Made [on youtube]) and indicate which of these company would use job order costing and which company would use process costing. Indicate how you came to your conclusion (this should be more than 50 words, but less than 100 words).

Homework Answers

Answer #1

After watching both the videos, it can be concluded that:

NASCAR Car should use Job order costing whereas

BMW Car should use Process Costing.

In the videos, it can be easily checked that the BMW Car is using the robotics technology with machinery for manufacturing the BMW cars which are the same in design and specifications whereas NASCAR Cars are making the car for the racing platform and they are based on specific requirements.

So for specific requirement products, job order costing should be used as the cost of each product will be different whereas for similar cars process costing should be used.

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