Brief Exercise 17.5 (Static) Types of Cost Accounting Systems (LO17-1, LO17-2)

Indicate whether job order costing is appropriate or not appropriate for each of the following businesses.

a. Let them eat cake (a small bakery that makes wedding cakes unique to each customer).

b. Baxter. Claxter and Stone (a law firm specializing in malpractice cases)

c. Brads & Tacks, Inc (a manufacture of nails used by contractors)

d. Stick Fast Glue inc (manufacturer of glue)

e. Fizz Masters ( a company that produces seltzer water)

f. Denny's Auto Repair

g. Rufford Rafters ( a firm that creates preassembled rafter systems for custom-built homes)

h. West Texas Hospital