Dell Computer Company’s manufacturing process consists of assembly, functional testing, and quality control of the company’s computer systems. The company’s build-to-order manufacturing process-is designed to allow the company to quickly produce customized computer systems. For example, the company contracts with various suppliers to manufacture unconfigured base Latitude notebook computers and then custom configures these systems for shipment to customers. Quality control is maintained through the testing of components, parts, and subassemblies at various stages in the manufacturing process.

Describe how Dell might set up a job-costing system to determine the costs of its computers. What is a “job” to Dell? How might the costs of components, assembly, testing, and quality control be allocated to each “job”?