B.2. Answer the following questions.

a. Name three (3) major similarities between job order and process cost systems. Explain clearly and completely the similarities between these two systems

b. Provide one example of an industry that would most likely use job order costing. Explain the reason they would likely choose to use job order costing. (i.e., explain clearly how job order costing would benefit them.)

c. Provide one example of an industry that would most likely use process costing. Explain why this industry would likely choose process costing. (i.e., explain how using process costing would benefit them.)

SOLUTION

B.2 a.

B.2.b.

B.2.c.