17-1SE-j
Question
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
j. A manufacturer of tennis shoes
Step-by-Step Solution
Verified Answer
A manufacturer of tennis shoes is most likely to use process costing system.
1Process costing
Process costing system is used by the companies when they are engaged in manufacturing the same product in large quantity and the production of the product passes through various procedures.
2A manufacturer of tennis shoes
A manufacturer of tennis shoes manufactures the shoes by following various manufacturing procedures. To determine the cost of different processes, the company must use the process costing system.
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