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EEC has introduced a new 1.5 gigabyte (GB) computer memory chip.
Should EEC use a job-order costing system, which is a costing system where costs are collected and assigned to units of production for each individual job, or a process costing system, which is a costing system that accumulates production costs by process or department for a given period of time, to report the costs of this new product?
How are the systems different?
Describe how the selected system would work to track the costs of the product.
Identify the cost driver, and explain the process of tracking the costs.
Provide examples of products that EEC might offer for which a job-order costing system would be appropriate.
Provide examples of products that EEC might offer for which a process costing system would be appropriate.
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