Clothes Manufacturing,Inc.manufactures clothes and distributes them to various buyers.This organization is unique because the managers reported identical costs per unit in the production and manufacturing operations.The managers also reported they use different quality of materials,and in different batches.What type of costing does the managerial accountant use at Clothes Manufacturing,Inc.?

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The Answer is The managerial accountant at Clothes Manufacturing Inc.utilizes both process costing and job costing processes,or a hybrid costing system.The hybrid costing system combines elements of both job and process costing.For example,process-costing system is used to cost the cost-per unit of the cutting and sewing operations.The managerial accountants use the job-costing system to cost the different materials used to make the clothing.