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The type of product a company produces affects the type of accounting system needed to determine product cost. The 2 most common types of costing systems are job-order costing and process costing.

Respond to the following in a minimum of 175 words:

  • Compare and contrast job-order and  process costing systems. How can events in a job-order costing system affect financial statements? How can events in a process costing system  affect financial statements? Provide specific examples for each type.