When is a hybrid costing system appropriate in a manufacturing setting?
A hybrid costing system combines characteristics of both job order and process costing systems. Such a system would be appropriate in a manufacturing setting where products can be mass produced up to a certain point and then must be customized after that point. For example an automobile manufacturer that sells a wide variety of options on vehicles would use a hybrid costing system--process for manufacturing the chassis and motor, then job order for the distinguishing features such as specialized interiors. Likewise a company that manufactured different types of clothes would use job order costing for the materials but process costing for processing the materials into finished products.
You might also like to view...
Truly innovative companies don’t rely only on one source or another for new product ideas. Instead, they develop extensive innovation networks that capture ideas and inspiration from every possible source, from employees and customers to outside innovators and multiple points beyond.
Indicate whether the statement is true or false.
According to psychologist Henri Tajfel, what are the basic strategies that people employ when positive social identity is threatened?
What will be an ideal response?