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Managerial Accounting
Introduction to Managerial Accounting
Jeannie M. Folk
Ray H. Garrison
Eric Noreen
Systems Design: Job-Order Costing

Internet Exercises

Student Instructions:

Companies must be able to accurately determine the cost of their products and services. The type of the production process involved usually dictates the type of costing system that is used to determine product costs. Go to the following company web sites to obtain an understanding of the nature of their operations and then answer the following questions: Which method of determining product costs (job-order costing or process costing) would be more appropriate in each of the following situations? Why?

  1. Bechtel International (www.bechtel.com)
  2. Boeing (www.boeing.com) (focus on its commercial airlines product line)
  3. TXI Riverside Cement (www.cement.com)
  4. Paramount Pictures (www.paramount.com) (focus on its motion picture product line)




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