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Jet engines are one of the many products made by the industrial operations division of General Electric. At prices as high as $30 million per

Jet engines are one of the many products made by the industrial operations division of General Electric. At prices as high as $30 million per engine GE does its best to keep track of costs. Because of the high product costs, both the engines themselves and the subsequent service are most likely accounted for using job order costing. GE needs good cost records for its service jobs in order to control its costs. Explain why GE would use job order costing to keep track of the cost of repairing a malfunctioning engine for a major airline.

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