MegaWidgets, known for its process costing system to account for the cost of its widgets, has received an order from a large retailer to produce and deliver 11,000 widgets. Can MegaWidgets use a job-order costing system for this order even though it generally uses a process costing system?

Requirement:

1. Explain how process costing and job-order costing differ in their application.
2. Evaluate the practicality of using job-order costing for the retailer's order.