Lazydays RV: Where Would it Benefit – Job Order Costing or Process Costing?

Process Costing
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Process Costing
Lazydays RV can extensively benefit from process costing to determine the proper selling price for their products or services. Process costing is best suited for companies that produce homogeneous products or services in a continuous production process. In the case of Lazydays RV, they manufacture recreational vehicles (RVs), which are typically produced in a standardized and continuous process.
Process costing offers several advantages. In terms of being homogeneous products, RVs are often manufactured in a consistent and standardized manner. The production process involves sequential steps where each unit goes through the same stages, such as chassis assembly, interior installation, painting, and final inspection (Fareri et al., 2020). Process costing is well-suited to handle these homogeneous products' accumulation and allocation of costs. There is also a continuous production flow. Process costing is designed to accommodate continuous production, making it easier for Lazydays RV to track t...