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