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Some Companies Use Process Costing and Some Use Job-Order Costing

Question 155

Essay

Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:
Custom boat builder
Frozen cranberry juice processor
Concrete block manufacturer
Winery that produces a number of varietal wines
Aluminum refiner that makes aluminum ingots from bauxite ore
Required:
For each company, indicate whether the company is most likely to use job-order costing or process costing.

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