Chapter 3, Problem 3.57SC

Job costing or process costing for wedding services (Learning Objectives 1, 2, 3, 4, & 7)

This case is a continuation of the Caesars Entertainment Corporation serial case that began in chapter 1. Refer to the introductory story in Chapter 1 for additional background. (The components of the Caesars serial case can be completed in any order.)

Caesars Palace® Las Vegas offers several wedding packages for on-site wedding ceremonies and/or receptions. Packages can include limousines, flowers, photographers, pianist/organist, and other services. Caesars charges a flat fee for the basic wedding package plus additional charges for a la carte or individually added-on items and services. Each wedding is facilitated by a Caesars wedding coordinator; assume that the planning services of a wedding coordinator are paid on an hourly basis.

1. 1. Would Caesars be likely to use a job costing system or a process costing system for determining the costs and profit for each wedding? Explain.
2. 2. If Caesars uses a job costing system for a wedding, describe what cost items might be included in each of the following categories:
   1. a. Direct material
   2. b. Direct labor
   3. c. Overhead