Name a company that is more likely to use process rather than a job order costing system and why? (2 sentences)
What is the purpose of a production report in cost accounting ? (1 sentence maximum.)
Process costing is used when a large number of homogeneous products are to be produced in a series of manufacturing processes. Job order costing is used when each output to be produced is unique i.e each unit is different from other. Companies that are more likely use process costing are Bradford soap works Inc (Soap making), Aramco (Oil company). These companies use process costing because they produce similar output units rather than custom products and production takes place through multiple processes. |
Production report is a management document which reports the flow and cost of units transferred through work in process of a department. |
Name a company that is more likely to use process rather than a job order costing...
Process costing rather than job order costing is more appropriate for service companies. O O True False
please answer each one individually thanks 2-1 What is job-order costing? 2-2 What is absorption costing? 2-3 What is normal costing? 2-4 How is the unit product cost of a job calculated? 2-5 Explain the four-step process used to compute a predetermined overhead rate. 2-6 What is the purpose of the job cost sheet in a job-order costing system? 2-7 Explain why some production costs must be assigned to products through an allocation process. 2-8 Why do companies use predetermined...
1.what is the meaning of job order costing? 2. why is job order costing important for managerial accounting? 3.how do manufacturing companies use job order and process costing systems?
7. Which of the following describes the differences between job-order and process costing? A. Job-order costing is used in financial accounting while process costing is used in managerial accounting. B. Job-order costing can only be used by manufacturers; service enterprises must use process costing. Job-order costing is voluntary while process costing is mandatory. D. Job-order costing traces costs to jobs while process costing traces costs to departments and averages the costs among the units worked on during the...
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...
1) What are primary differences in job cost accounting versus process cost accounting with respect to the following categories? Job Cost Process Cost Type of order Type of product Volume Flexibility Standardization Documents Used Work in Process Accounts 2) How do the journal entries for a process costing system differ from a job costing system? 3) What does equivalent units of production (EUP) measure? Why is EUP used? 4) What are the two types of cost that make up conversion...
When are companies likely to use a job costing system or process costing system? Describe the specific characteristics of each system and provide at least 2 examples from companies in your community for each system (at least 4 companies should be described).
1. What is absorption costing? 2. How is job-order costing different from process costing? 3. Why would a company choose one method over the other? 4. Provide a real-world example of a company that might use job-order costing (use an example not listed in the textbook).
S18-1 (book/static) Identify each costing system characteristic as job order costing or process costing. a b. C. d. One Work-in-Process Inventory account Production cost reports Cost accumulated by process Job cost sheets
Week Four - Some companies are more suited to job order costing and others to process costing. Define these two types of accounting for costs and give a few examples of companies that would benefit from job order costing.