Three basic types of costing systems
There are three basic types of costing systems (job order; process; and operations). Which of the three would be used by a CPA firm? By a potato chip factory?
Given the different types of costing, a CPA firm is most likely to use a job costing approach to cost analysis of the costs incurred by the firm therein. The job costing approach determines the costs of running a particular business based on the cost of each individual job…