Chapter 4, Problem 4.16E

To determine

Job Costing:

Job costing is a process of recording the cost on the basis of manufacturing job instead of the process. In job costing, the project manager records separate cost for each job project. The cost accountant of the company also makes the separate cost sheet for each job assignment.

Process Costing:

Process costing is a costing method generally used by the large scale companies. In process costing, the calculation of cost is done at the completion of process. It means, at the completion of one stage, the accountant will make process account and ascertain the loss or gain from that stage.

To identify: Whether job costing or process costing is suitable for the given business.