Define process costing and describe the types of companies that use process costing. How does a process cost system differ from a job costing system? What is meant by average cost procedure? What other two cost flow assumptions could be used? Would an automobile plant that makes specialty race cars use job costing or process costing? Would an automobile plant that makes all-terrain vehicles use job costing or process costing? Explain your answer. Real world question Does the Coca-Cola Company use a process cost system or a job costing system in its bottling plants? Why? Real world question Name five companies that probably use process costing. A company's performance measure is the number of customer complaints. Why would the company measure the number of customer complaints? A company's performance measure is the percentage of time that machines are not working. Why would the company measure the percentage of time that the machines are not working? What is the difference between activity-based costing and activity-based management? Activity-based costing methods use four steps in computing a product's cost. What are these steps? "Activity-based costing is great for manufacturing plants but does not really address the needs of the service sector." Do you agree with this statement? Explain. What is a cost driver? Give three examples. The vice president of marketing wonders how products can cost less under one cost system than under another. How would you respond to her question "Are not costs cut-and-dried?" A drawback to activity-based costing is that it requires more record-keeping and extensive teamwork between all departments. What are the potential benefits of a more detailed product cost system? Give three criteria for choosing cost drivers for allocating costs to products