Some Companies Use Process Costing and Some Use Job-Order Costing

question 91

Essay

Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:1. Construction company that builds office buildings2. Winery that produces a number of varietal wines3. Cement manufacturer4. Mushroom farm that produces the standard button mushroom in caves5. Aluminum refiner that makes aluminum ingots from bauxite oreRequired:For each company, indicate whether the company is most likely to use job-order costing or process costing.

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Definitions:

Independent Variable

A factor or condition that is intentionally varied by the researcher to observe its impact on the dependent variable in an experiment.

Dependent Variable

In an experiment, it is the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.

Gustav Theodor Fechner

A German philosopher, physicist, and experimental psychologist, known as a founder of psychophysics, which quantifies the relationships between physical stimuli and the sensations and perceptions they affect.

Psychophysics

The branch of psychology that studies the relationships between physical stimuli and the sensations and perceptions they produce.