Chapter 5: Product and Service Costing: Job-Order System

1. Explain the role of activity drivers in assigning costs to products.

2. Why are the accounting requirements for job order costing more demanding than those of process costing?

3. Folio Glass produces custom glass platters. For one job, the trainee assigned to cut the glass set the template incorrectly into the computer. This template was unusable and had to be discarded; another template was cut to the correct dimensions. How is the cost of the spoiled template handled?

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