1) You were introduced to three types of costs associated with a manufactured product? direct materials, direct labor, and manufacturing overhead. Explain how these costs are associated with the manufactured product. Why are some of these costs allocated to the product through costing methods such as job order costing or process costing?
As part of your response, be sure to provide a specific example of a company?s manufacturing costs.
2) Explain the similarities and differences between job order costing and process costing. In your explanation, provide examples of when job order costing and process costing would be most appropriate.