Examples of companies that use Job contract costing are : Boeing (Airplanes) and Deloitte accounting and consulting firm.
Examples of campanies using process costing are:Chevron Corporation (petroleum products), the Wrigley Company (chewing gum)
Differences between the processes are as under:
Basis of Difference | Process Costing | Job costing |
Product costs | Product costs are assigned to departments (or processes). | Product costs are assigned to jobs. |
Unit cost information | Unit cost information comes from the departmental production cost report. | Unit cost information comes from the job cost sheet. |
Inventory accounts | Several different work-in-process inventory accounts are used—one for each department (or process). | One work-in-process inventory account is used—job cost sheets track costs assigned to each job. |
please choose a company that uses Job costing and process costing and explain the benefits of...
A. Compare the characteristics of job costing and process costing. Consider how each method impacts the accounting work involved. B. Select a company of your choice and explain when they might use job costing and when they might use process costing. Cite your work and include sufficient detail. C. Explain why costing methods used in the service industry are different from those used in the manufacturing or merchandising industries. D. Select a service industry company of your choice that uses...
: Different costing methods provide companies with different options for categorizing and calculating costs. Managers and cost accountants should understand the differences between costing methods so that they can choose and properly implement the method that best suits their needs for decision making. For this short paper, you will compare the characteristics of job costing and process costing methods and give examples of when and why each might be used. You will also address the use and benefits of costing...
What are the major differences between job-order costing and process costing systems? Give an example of a well-known company that might use job-order costing and an example of a well-known company that might use process costing. Explain why you have chosen the companies that you did, specifically why job order costing or process costing are used. *** You are also required to name a company that uses both costing methods, including providing an explanation of your choice. A great place...
In this paper, please discuss the three costing methods of job order costing, process costing, and activity-based costing. Define each method and explain when it is best suited to be used. Compare and contrast the methods and consider their benefits and shortfalls. Use the information provided to propose which cost method should be used to allocate costs. Wet Suit World is a company that manufactures wet suits for use with water sports such as snorkeling and scuba diving. The suits...
In this paper, please discuss the three costing methods of job order costing, process costing, and activity-based costing. Define each method and explain when it is best suited to be used. Compare and contrast the methods and consider their benefits and shortfalls. Use the information provided to propose which cost method should be used to allocate costs. Wet Suit World is a company that manufactures wet suits for use with water sports such as snorkeling and scuba diving. The suits...
What are the major differences between job-order costing and process costing systems? Give an example of a well-known company that might use job-order costing and an example of a well-known company that might use process costing. Explain why you have chosen the companies that you did, specifically why job order costing or process costing are used. Do not choose companies that your classmates have already commented upon. Participate in follow-up discussion by critiquing your classmates' choices of companies.
Why would a company choose to use process costing? Why would a company choose to use job order costing? Create a company that either uses process costing or job order costing and describe the operating cycle for your company (from the purchase of raw materials, to their requisition to make something, to the finished product, and finally to selling an item.)
Nicholson Company uses job order costing. Supporting documents for the Work-In-Process Inventory account do NOT include ________. labor time tickets time cards materials requisition forms schedule of actual factory overhead costs
How would you describe job-order costing vs. process costing and it work environments? How would you describe normal costing vs. actual costing? How is overhead assigned to production when a predetermined overhead rate is used? Explan.
Assume that your client company uses job costing, you, as the consultant, are writing a memorandum to your client company and recommending ABC. In the writing, please describe the reasons and benefits of changing to ABC. How would you separate the information in the memorandum? Like what kind of categories to explain the benefits.