Product costing systems are methods used to manage inventories. Accounting systems primarily engage one of three costing systems at a time: job order costing, process-based costing, or activity-based costing.
Respond to one or more of the following in a minimum of 175 words:
- Briefly explain each of the three costing systems in accounting. Discuss the situations in which each system would be best employed by a business.
- Distinguish between under- and over- applied manufacturing overhead.
- Distinguish between direct and indirect materials.
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