A owner of a bike shop specializes in custom-built bikes. The Sales Manager & CFO want to talk to the owner about switching product costing allocation methods. The Sales Manager recommends switching from a single plant-wide factory overhead rate to multiple production department overhead rate. The CFO recommends activity-based costing with 4 cost pools. What are the possible product cost distortions under each cost allocation method? And what recommendation should be implement and why?

A specialty instrument manufacturer is in the process of establishing a cost system. The company produces machines that are unique and distinctive. These machines are produced when purchase requests are received from customers. Although some common parts and sub-assemblies are to be held in inventory, no finished goods inventory is maintained since each purchase request is for a customized specialty instrument. The type of cost accumulation system that would be best suited for this type of environment would be A. Just-in-time costing. B. Batch-level costing. □C. Job-order costing. □D. Process costing.

Green Thumb Gardening is a small gardening service using activity-based costing to estimate costs for pricing and other purposes. The owner of the company believes costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depend on whether the beds are low-maintenance beds (mainly ordinary trees and shrubs) or high-maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service The company completed its first-stage cost allocations and summarized its annual costs and activity as follows: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer…

Coca-Cola uses process costing. And, products that are customizable should use job costing. However, sometimes a large amount of the product is similar and then there are some small differences (or customization) at the end. Can anyone give me any examples of these types of products?  Note that when that occurs, we don't have to use use just process costing or just job costing. We can use a combination of both systems, then adding them together to help us get to a final cost of the product. Examples of good candidates for this process?