This case focuses on the difference between a business that produces a standard good (and uses
standard costing) and on that produces custom goods and uses job costing. Although numbers are
included in this case, they are there to heip illustrate the effect of changing the system. Your options for this
case are:
Keep the existing system used by Bennett Body Company
Change to a standard costing system used by Conley
Use a hybrid form of costing that utilizes both standard and job costing features
There are many correct answers to this case; however, all involve giving specific examples to justify which
accounting method you prefer. Also, if there are clear reasons why one of the systems should not be used,
explain what they are.
Sample Solution
