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PixelTech Inc., which uses a process costing system for its smartphones, has received a special request from a telecom company to produce and supply 8,000

PixelTech Inc., which uses a process costing system for its smartphones, has received a special request from a telecom company to produce and supply 8,000 smartphones. Can PixelTech Inc. adopt a job-order costing system for this special request while continuing its normal operations with a process costing system?

Requirement:

  1. Describe the key differences between process costing and job-order costing systems.
  2. Assess the feasibility of using job-order costing for the special request.

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