Define, describe and distinguish job-order costing and firms that might use process costing. Provide examples of manufacturing firms that might use job-order costing and process costing. Can these costing systems be used by service firms? Which would a service firm be more likely to use? Why?

Why would a manufacturing firm use departmental rates rather than one factory overhead (OH) rate? Describe an advantage and a disadvantage of using departmental rates.

Is a company required to allocated support department costs to producing departments? If not, how are these costs allocated to producing departments? Would failure to allocate support department costs have a negative impact on behavior of managers of producing departments? Why or why not?