Applied Managerial Accounting
• Should EEC use a job-order costing system, which is a costing system where costs are collected and assigned to units of production for each individual job, or a process costing system, which is a costing system that accumulates production costs by process or department for a given period of time, to report the costs of this new product?
o How are the systems different?
• Describe how the selected system would work to track the costs of the product.
• Identify the cost driver, and explain the process of tracking the costs.
• Provide examples of products that EEC might offer for which a job-order costing system would be appropriate.
• Provide examples of products that EEC might offer for which a process costing system would be appropriate.