Hi...
Anyway... im in doubt here... Does Job Order Costing Method is suitable to be applied in a cake bakery business?

Hi all...

Why marginal costing method is not suitable for manufacturer for external reporting and tax purpose?. many thanks for the answer.. :-)

Yes Job order is suitable for a bakery business because you have standard products produced in batches.

Dear hamzashakaa,
Please justify you answer more detail
Thank

In the bakery system there are many batches of products such as bread, coockies, Cakes and other. So you should open a job order sheet for every batch. Moreover, there are different materials used in each batch, the materials used to produce cookies for example are different from the materials used to produce bread. Accordingly, you can't use process costing in this business because the products are not identical.

Thank you very much hamzashakaa.

Moved to homework and merged