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Whether a Company Uses Process Costing or Job-Order Costing Depends

Question 161

Essay

Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below:
Brick manufacturer
Contract printer that produces posters, books, and pamphlets to order
Natural gas production company
Dairy farm
Coal mining company
Specialty coffee roaster (roasts small batches of specialty coffee beans)
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing.

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