The Machine Shop uses lathes, drill presses, and other metal-working equipment to do machining to customer order. It grinds valves; cuts, drills, and bends sheet metal; and welds. A large portion of The Machine Shop’s business is fabrication of machine parts for machine repair work by other companies in the vicinity. The company also often repairs brush hogs and other equipment for local farmers.

Required: What kind of cost accounting system would you recommend that The Machine Shop use? What features of the system that you recommended would be useful to the company, and why would each of these features be useful? TLK=2