Managerial Decision


4-6 Paragraphs

Consider the following scenario: 

Your CFO, in her initial work, needs to decide whether to set up a job order 

costing system or a process type costing system. She has asked you to make a 

recommendation based on the following information. You plan to meet with her in 

the morning. Write 4–6 paragraphs in response to the following, and provide 

support for your recommendation:



1.	Compare and contrast job order costing to process costing methods.

 

1.	What kind of system works best in what kinds of companies?

 

1.	What kind of system makes sense for your company, given that you plan to 

start with only one version of your product but at some point in the future may 

offer a variety of options?



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