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Which costing system should a service firm

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Reference no: EM132315839

Qyestion: Total of 3-4 pages needed and APA format paper is needed with reference page must be added.

1. 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?

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

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

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

Reference no: EM132315839

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