State Whether Each Company Below Would Be More Likely to Use

question 291

Essay

State whether each company below would be more likely to use a job costing system or a process costing system.

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Definitions:

Retail Shop

A business establishment that sells goods or merchandise directly to the end consumer for personal or household consumption.

Supplies On Hand Account

An account used to track the value of materials and supplies currently available for use within a business.

Adjustment

An entry made in accounting records to correct or allocate transactions properly.

Service Company

A service company is a business that earns revenue through the provision of services, as opposed to selling physical products.