- When you have a company that is making many different products, as Parlex is, each product costs differently to make. Using job order costing they can figure out which products take more money to make and then efficiently assign prices to each product.
- In a company like Parlex when they have many different locations, it is easier to use job order costing because making products in different countries or states costs the company differently, they are then able to see how much is being made in each location and how the pricing should be handled.
- In a company that makes things for electronics, pricing changes often and different products take different amount of times to make. Using job order costing they can assign cost by time and product.