You made a fantastic point about customized products! Anytime we see the word custom, we know that the company will be well-suited for a job-order costing system. A custom order is basically one that the customer is able to tailor to their needs. They may be able to select the materials that are used and details or work done to the product.

Class, how might we allocate manufacturing overhead to these custom products in a fair and reasonable manner? How might the approach differ depending on the business model?