Final answer:
The statement is true; job costing is appropriate for specific, customized jobs like a Pepsi ad campaign, while process costing suits uniform processes like bank transactions.
Step-by-step explanation:
The statement that job costing is suited for a specific advertising campaign for a client like Pepsi, and that process costing can be used to compute the cost of processing many similar checking account deposits is true. Job costing is used when products or services are distinct and customized, which enables all the specific aspects of the job to be identified and costed out. For instance, a Pepsi advertising campaign would have its own unique costs associated with creativity, production, and media placement among others. In contrast, process costing applies when similar products or services are mass-produced or provided in a continuous flow. In the banking industry, transactions like checking account deposits are highly uniform, and process costing efficiently assesses the costs of these transactions.
Understanding fixed costs is crucial in job and process costing. Fixed costs, such as rent or lease of a factory, do not change with production levels. However, the pattern of costs can vary greatly between industries. For example, an internet company with high fixed costs for setting up may have low variable costs thereafter, while a local moving business may have minimal fixed costs. The total cost pattern depends on the balance between fixed costs and the variable costs incurred as production increases.