Which costing system (Process Costing or Job Costing) would the following companies employ to determine the cost of its products? Warner Bros. Motion Pictures A. Job Costing B. Process Costing Jif Peanut Butter A. Process Costing B. Job Costing Hill Country Medical Practice A. Job Costing B. Process Costing Kraft, Inc. A. Job Costing B. Process Costing

The companies would adopt costing system as shown below:

Warner Bros.Motion Pictures-Job order

Jif Peanut Butter-Process Costing

Hill Country Medical Practice-Job order

Kraft, Inc-Process Costing

Explanation:

Process costing is a cost accounting approach   for gathering and assigning manufacturing costs to quantity produced.It is typically suitable where there is mass production.Since Kraft and Jif Peanut Butter produce food items in mass,process costing fits perfectly.

Job order costing on the other hand,is most appropriate when products or services are tailored to customer's request ,each with its unique features,hence unique cost structure.The movies produced by Warner Bros,Motion Pictures share the unique nature, so also a medical practice would have to handle surgeries that are not exactly similar.

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