Discussion Topic: Process Costing
Read Concepts in Action, “Hybrid Costing for Under Armour 3D Printed Shoes” in Chapter 17.
Regarding process costing, discuss the following:
- Distinguish between job order costing and process costing. What types of products would be produced using a process cost system?
- What is an “equivalent unit of production,” and why is it a necessary concept to employ in a process costing system?
- Explain how Under Armour uses a hybrid system for production of their customized 3D shoes.
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