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Your company is planning a new production facility that will process wood chips into standard rolls of newsprint for sale to printers. Would you recommend that the company use job-order costing or process costing to account for the costs of producing the rolls of newsprint?

Respuesta :

Yes, I will  recommend that the company use job-order costing or process costing to account for the costs of producing the rolls of newsprint. As job order is totally depends on Job costing.

What is Job Order Costing System

A  job order costing system is a way of assigning costs to a specific unit or product. for example, an vehicle save that restores vintage automobiles will incur specific costs for each car that it restores and then charge a specific amount for that healing activity, that allows you to likely be different than the amount it charges for the next restoration. This costing system is seen a lot in custom product and service companies.

The job order costing system determines the cost of a product or service based upon three components of price. This includes:

  • Direct materials, which is the materials used to create the product or service
  • Direct labor, or the employee labor used to create the product or service
  • Production overhead, that is the overhead immediately linked to the advent of the product or service, which include the strength used to run machines on a production line.

Learn more about job order https://brainly.com/question/14832119

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