Job Order and Process Costing
Response to the following :
Select two (2) of the following types of companies and explain whether each would use job order or process costing. Be sure to explain and support your answers.
A law firm
An oil refinery
A soda manufacturer
A custom-home builder
For each of the two types of companies selected above, give at least one example each of the following costs each company might incur. Fully explain your examples.
Direct material
Direct labor
Manufacturing overhead
Selling and administrative expense