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:
Compare and contrast job order costing to process costing methods.
What kind of system works best in what kinds of companies?
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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