Compare and contrast the two costing systems

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Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Answer the following questions regarding these two systems:

a. Compare and contrast the two costing systems.

b. Which costing system should a service firm, such as an advertising agency use?

c. How do these two systems provide decision-making information?

Describe activity based costing.

a. Give two examples where activity based costing is preferable over traditional costing.

b. How is activity-based costing useful for decision making?

c. Discuss the three overhead rate methods used in activity-based costing and consider their relative usefulness.

Reference no: EM131911844

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