Que 1: Short Question Answers

1. What is cost pool, cost tracing, cost allocation and cost allocation base?

2. How does a job-costing system differs from process costing system?

In each of the following situations, determine whether job costing or process costing would be more appropriate.

Give justification.

a. An educational institute

b. An oil refinery

c. Bank

d. Hospital

e. A convenience store

f. A supermarket

g. A law firm

h. A plastic manufacturing organisation