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TechCorp, which typically operates a process costing system to account for the cost of its tablets, has received a special order from an educational institution

TechCorp, which typically operates a process costing system to account for the cost of its tablets, has received a special order from an educational institution to produce and sell 10,000 tablets. Can TechCorp use a job-order costing system to account for the costs associated with the special order even though it uses a process costing system for its normal operations?

Requirement:

  1. Explain the differences between process costing and job-order costing.
  2. Discuss the advantages and disadvantages of using job-order costing for this special order.

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