Question
The computer workstation furniture manufacturing that Santana Rey started for Business Solutions is progressing well. Santana uses a job order costing system to account for
The computer workstation furniture manufacturing that Santana Rey started for Business Solutions is progressing well. Santana uses a job order costing system to account for the production costs of this product line. Santana is wondering whether process costing might be a better method for her to keep track of and monitor her production costs.
1. What are the features that distinguish job order costing from process costing?
2. Should Santana continue to use job order costing or switch to process costing for her workstation furniture manufacturing? Explain.
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