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

question 16

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. Contract printer that produces posters, books, and pamphlets to order
2. Corn meal mill
3. Cattle feedlot that fattens cattle prior to slaughter
4. Shirt manufacturer that makes clothing on contract for department stores
5. Commercial photographer
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing.

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Definitions:

Cannon-Bard Theory

A theory of emotion that posits emotions and physiological reactions occur simultaneously and independently.

Schachter Two-factor Theory

A psychological theory which proposes that emotions are comprised of two factors: physiological arousal and cognitive label.

Common Sense Theory

An approach suggesting that people naturally form theories about their experiences and the world around them, based on everyday observations and practical reasoning.

Autonomic Arousal

The activation of the autonomic nervous system, which regulates involuntary body functions and is often associated with stress or excitement.