Question

1.  Explain the role of activity drivers in assigning costs to products.

2. Why are the accounting requirements for job order costing more demanding than those of process costing?

3. Folio Glass produces custom glass platters. For one job, the trainee assigned to cut the glass set the template incorrectly into the computer. This template was unusable and had to be discarded; another template was cut to the correct dimensions. How is the cost of the spoiled template handled?

Answer 1

- Answer * different 0 The role of activity drivers an assigning costs to products. Generally to allocate specific of cost we need activity driver which iſ a basis to apporte on the Entire cost of Caetag osy Hodiffer poojects based on their use of pertormance soit allocate a expenses. Category to the projects Based on the appropriate cortesia to get better * Segelt analytis. Scanned with CamScanner

☺ process costing helpslas in deriving total coste for a specifæc proocess * where job Costing helps us inderiving Cose for a specific job. * which wecan digjectly compare with the revenue received for the Specific job. and decide on ollut profitability. © If the action regular and comel - in regular action and frequently then * it will be asigned to the job cost. * otherwise at will be treated as Extra Ordinary cost and not be apart a total cost. a CS Scanned with CamScanner