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Management Accounting
Willie Seal, University of Essex, UK
Ray Garrison, Brigham Young University, Provo, Utah, USA
Eric Noreen, INSEAD, France

Systems Design: Job-Order Costing

Internet Exercises

www: IE3-34 Job-Order versus Process Costing The chapter mentions that Bechtel International and Boeing are likely to use job-order costing in most of their lines of business. To help understand the nature of their business, access these companies' web sites at www.bechtel.com and www.boeing.com.

  1. Based on the information you found on the companies' web sites, explain why they would be more likely to use job-order costing than process costing in most of their lines of business.
  2. Access the web site of TXI Riverside Cement at www.cement.com. Is this company more likely to use job-order costing or process costing for its products? Why?
  3. Access the web site of Paramount Pictures at www.paramount.com. Is Paramount Pictures more likely to use job-order costing or process costing for keeping track of the costs of its movies? Why?