"Exercise 18 6A Job Order Costing In A Service Company" Essays and Research Papers

  • Exercise 18 6A Job Order Costing In A Service Company

    job costing Definition (according to business dictionary) An order-specific costing technique, used in situations where each job is different and is performed to the customer's specifications. Job costing involves keeping an account of direct and indirect costs. Since both types of costs are usually closely related (a job requiring high input of labor and material is likely to consume more power, machine time, supervision time, inspection time, etc.) indirect costs may be applied as an estimated...

    Cost, Cost accounting, Costs 3002  Words | 7  Pages

  • EX 2 Job Order Costing

    1 JOB ORDER COSTING EXERCISES EX-1 Good Samaritan Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room over-head. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $124,500 Depreciation expense...

    Cost, Depreciation, Employment 444  Words | 4  Pages

  • Transport & Service Costing

    & Service costing Service Costing   Unit costing is the method of costing used when the cost units are identical. Identical cost units should have identical costs and this concept of equality of costs is the basic feature of unit costing.   It may be noted that process costs, output costing and service costing are the sub-divisions of unit costing method.   Service Costing – Nature and Problem:   Service or operating cost is the cost of providing services. Service costing is the...

    Cost, Cost accounting, Costs 1071  Words | 5  Pages

  • Job Order Costing System

    Literature Review A literature review • Provides an overview and a critical evaluation of a body of literature relating to a research topic or research problem. • Analyzes a body of literature in order to classify it by themes or categories, rather than simply discussing individual works one after another. • Presents the research and ideas of the field rather than each individual work or author by itself. A literature review often forms part of a larger research project, such as within...

    Academic publishing, Problem statement, Research 743  Words | 3  Pages

  • Product Costing System

    Product costing systems in modern manufacturing organisations Product costing refers to the process of assigning shared direct and indirect costs to individual products, customers, branches or other cost items. (USAID, 2007) Product costing is also referred to as assigning costs to inventory and production based on the expenses that go into producing or buying inventory. It is an important process for manufacturers that helps improves management information on products and helps managers and the...

    Cost, Costs, Finished good 1565  Words | 5  Pages

  • Advantages of a Process Costing System

    ACCT283B group project Chapter 18: Process Costing Abstract This paper identifies the key points on Process Costing. It covers over various topics like the flow of costs through a process costing system, how to calculate equivalent units of production for direct materials and conversion costs, the preparation of a production cost report, and how to prepare journal entries for a process costing system. Examples will also be shown on how process costing is used in the real world...

    Costs, Manufacturing 1585  Words | 6  Pages

  • Process Costing

    Process Costing Vs. Job Order Costing Manufacturers use different types of costing systems to allocate production costs to their products and services. Two types of common product costing systems are process costing and job-order costing. While each system applies the same production costs to products, there are distinct variances in the application method. Process Costing o Process costing applies production costs to products based on the process they go through in the manufacturing process....

    Cost, Cost accounting, Costs 1840  Words | 6  Pages

  • Greetings, Inc. - Job Order Costing

    Mary E. Jones 01/14/2011 ACC 560 Case 1: Greetings Inc.: Job Order Costing 1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system? A predetermined overhead rate is the rate used to apply manufacturing overhead to work-in-process inventory. The predetermined overhead rate is calculated before the period begins. The first step is to estimate the amount of the activity base that will be required to support operations...

    Activity-based costing, Cost, Costs 661  Words | 3  Pages

  • Costing Methods Paper 1

    Bakery, Inc. & Costing Methods 561/ACC-Accounting July 7, 2014 Larry Key Super Bakery, Inc. & Costing Methods A sign of the future is the way corporations are forming to reduce costs and maximize profits. One way corporations are doing this is by forming virtual corporations. A virtual corporation is when the majority of the support activities are outsourced and only the core functions are done inside the main company. (Davis & Darling, 1996) Relationships are formed with outside companies whose business...

    Corporation, Cost, Cost accounting 677  Words | 5  Pages

  • Job order costing

    Job Order Costing in Manufacturing and Service Companies Costing is a tool to determine the cost incurred in the production of the goods and services. There are different types of cost which are used in the production such as direct material, direct labor and manufacturing overhead. A business man always put various efforts to know the cost incurred in each head and make cost-benefit analysis to check its profitability. For this, he uses different types of costing systems such as normal costing,...

    Cost, Cost accounting, Cost-benefit analysis 431  Words | 2  Pages

  • Costing Methods

    Costing Methods Paper Baldomero Garza, Carrie Davis Tsao, Chelse Monnier, Elizabeth Sanchez, Lea Dague, ACC/561 November 26, 2012 Cathleen Davis Costing Methods Paper Costing Methods Franco Harris’ company Super Bakery, Inc. has seen significant success along with continued growth throughout its existence. The authors point out that the company has enjoyed a 20% average growth “during most of its existence” (Kimmel, Weygand, & Kieso, 2009). The purpose of this analysis is to identify...

    Activity-based costing, American films, Cost 1065  Words | 4  Pages

  • Case I - Greeting Inc.: Job Order Costing

    meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system. The predetermined overhead rate is used for estimating the manufacturing overhead cost because companies cannot assign the actual overhead cost to specific job. From the case, Wall Décor uses a traditional job-order costing system. The actual costs of direct materials and direct labor are charged to its specific jobs which are unframed prints, steel-framed with no matting prints, and wood-framed...

    Cost, Costs, Mathematics 983  Words | 5  Pages

  • dream chocolate company

    Dream Chocolate Company: Choosing a Costing System Analysis of D.C.’s Competitive Environment and Information Need Dream Chocolate (D.C.) is a small company trying to survive in an industry with many competitors. The competitive environment comes from some factors. Firstly, D.C. bars are sold in specialty markets, fine gift stores and also available online. However, the competitive companies can also provide various chocolate bars for customers with the low price on the Internet. Secondly, comparing...

    Chocolate, Cost, Cost accounting 2345  Words | 4  Pages

  • Case 1: Greetings Inc : Job Order Costing

    Chapter 2 Case 1: Greetings Inc.: Job Order Costing Solution: 1. As seen in the case, using a traditional job-order costing system Wall Décor charges the actual costs of direct materials and direct labor to its specific jobs- unframed prints, steel-framed and no matting prints, wood-framed and mating prints. Since costs of manufacturing overhead related to production operations as whole, these costs cannot be assigned to specific jobs on the basis of actual costs incurred. Instead, Wall...

    Allocation, Cost, Costs 678  Words | 3  Pages

  • Process Costing

    EXERCISE 3–1: Process Costing and Job-Order Costing [LO1] Which method of determining product costs, job-order costing or process costing, would be more appropriate in each of the following situations? * a. An Elmer’s glue factory. * b. A textbook publisher such as McGraw-Hill. * c. An Exxon oil refinery. * d. A facility that makes Minute Maid frozen orange juice. * e. A Scott paper mill. * f. A custom home builder. * g. A shop that customizes vans. * h. A...

    Cost, Costs, Management accounting 834  Words | 3  Pages

  • Accounting 310 Unit 3db Activity Based Costing & Process Costing

    Compare and contrast job order costing to process costing methods. Comparison: These systems are to determine the manufacturing costs of products. Both costing systems combine direct materials, direct labor and overhead which is indirect costs or could be considered a direct cost in the process costing method nonetheless both systems use this in the process of producing products. The manufacturing accountants assign cost objectives to raw materials inventory, work in process inventory and finished...

    Cost, Cost accounting, Costs 822  Words | 3  Pages

  • Cost Accounting and Job Order Cost

    accounting systems. (b) May a company use both types of cost accounting systems? 3. What type of industry is likely to use a job order cost system? Give some examples. 4. What type of industry is likely to use a process cost system? Give some examples. 5. Your roommate asks your help in understanding the major steps in the flow of costs in a job order cost system. Identify the steps for your roommate. 6. There are two inventory control accounts in a job order system. Identify the control...

    Book of Job, Cost accounting, Manufacturing 546  Words | 3  Pages

  • Module 2 Exercises

    Module 2 Exercises Problem 1: 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. ANSWER = TRUE 2. A process cost system is used when each finished unit is indistinguishable from another. ANSWER = TRUE 3. Companies that produce soft drinks, motion pictures, and computers chips would all use process cost accounting. ANSWER = FALSE -Companies that produce soft drinks and computer chips would all use process cost accounting...

    Cost, Cost accounting, Costs 383  Words | 3  Pages

  • Process Costing

    I. Discuss Process Costing, clearly bringing out its advantages and disadvantages. DEFINITION Costs are accumulated in costing systems. According to Glautier and Underdown (2001), the development of costing systems reflects the manner in which accounting methods have been adapted to the needs of different forms of activity and technology, and also to the appearance of advanced manufacturing techniques that have been a feature of recent years. Cost accounting systems allow full product costs to...

    Cost, Cost accounting, Costs 1291  Words | 4  Pages

  • Job Order Costing System

    1. Describe when it is appropriate for a company to use a job-order costing system. Answer Job order cost system provides per unit cost of manufactured products. Job order cost system is used by the companies that manufacture custom products for customers or batches of similar products. Job order cost system is used in the companies that offer many different products or services to its customers. Example Industries where job order cost system is used are Furniture manufacturing, Apparel manufacturing...

    Cost, Cost accounting, Employment 291  Words | 2  Pages

  • Job Order Costing

    Process costing is used for homogenous products (continuous flow processes such as producing cans of soda). Job-order costing is used in situations where the organization offers many different products or services, such as in furniture manufacturing, hospitals, and legal firms. Process costing is used where units of product are homogeneous, such as in flour milling or cement production. The purpose of a job order cost accounting system is to assign and accumulate costs for each job, i.e....

    Cost, Costs, FIFO and LIFO accounting 408  Words | 2  Pages

  • Activity-Based Costing

    Activity-Based Costing Instructor Bradley Johnson December 17, 2012 Activity-Based Costing In business, there are two separate costing methods that a firm can use. One of those methods is called traditional costing system and the other is activity-based costing. Activity-based costing (ABC) is a costing method that focuses on identifying activities which allocates the costs of each activity a firm uses. From our text, it identifies Activity-based Costing as “a two-stage product costing method that...

    Activity-based costing, Allocation, Cost 3098  Words | 7  Pages

  • Proccess Costing vs Job Order

    Process Costing - The Hershey Company/ Kaiser Aluminum Process costing is used mostly in companies when converting raw materials into homogenous products. A single product is produced on a continuous basis and all units of the product are identical. Costs are computed by department where the materials, labor, or overhead costs are added to the product in the processing department. Our two companies, The Hershey Company and Kaiser Aluminum, convert raw materials to their finished products of chocolate...

    Chocolate, Chocolate liquor, Cocoa bean 658  Words | 2  Pages

  • Job Order

    4 JOB COSTING I. LEARNING OBJECTIVES 1. Describe the building-block concepts of costing systems 2. Distinguish job costing from process costing 3. Outline the seven-step approach to job costing 4. Distinguish actual costing from normal costing 5. Track the flow of costs in a job-costing system 6. Dispose of under- or overallocated manufacturing overhead costs at the end of the fiscal year using alternative methods 7. Apply variations from normal costing ...

    Cost accounting, Costs, Inventory 2289  Words | 10  Pages

  • Job Order Costing

    Chapter 3 Systems Design: Job-Order Costing Types of Costing Systems Used to Determine Product Costs Process Costing Chapter 4 Chapter 4 Job-order Costing Many different products are produced each period. Many different products are produced each period. Products are manufactured to order. Products are manufactured to order. Cost are traced or allocated to jobs. Cost are traced or allocated to jobs. Cost records must be maintained for each distinct Cost records must be maintained for...

    Cost, Cost accounting, Costs 4174  Words | 22  Pages

  • Products Costing System

    Dear Mr & Mrs Izsmart, We acknowledge that Sunflower Ltd is a large public company, reputable for its diverse range of flowers and large customer base. At present, we have identified that there is no formal product costing system implemented in the company – with the exception of the calculation of product costs imperative for external financial reporting purposes, prepared by your company’s accountant. In order to reduce cost pressures upon Sunflower Ltd, in the highly competitive flower sector...

    Activity-based costing, Cost, Cost accounting 1686  Words | 7  Pages

  • Customer Service and Order Processors

    The Human Side of Management Assignment   Repairing Jobs That Fail to Satisfy    Learning Goals   Companies often divide up work as a way to improve efficiency, but specialisation can lead to negative consequences. DrainFlow is a company that has effectively used specialisation to reduce costs relative to its competitors’ costs for years, but rising customer complaints suggest the firm’s strong position may be slipping. After reading the case, you will suggest some ways it can create more...

    Customer, Customer service, Employment 2006  Words | 7  Pages

  • Costing Method Super Bakery

    Inc. – Costing Methods Norman Thompson ACC/561 July 24, 2010 In today’s economy the business world has changed tremendously with the advances of computer systems, global competition, and innovation in technology. Because of these changes businesses compete to keep their products and services profitable as well as keeping a strong customer base. The main challenges for keeping a business successful are managing the cost of services and products while keeping the company lean for...

    Cost, Costs, Decision making 1038  Words | 4  Pages

  • Omega Technical Services Company

    Job satisfaction at Omega Technical Services Omega, is a medium sized UK company established in the 1980s providing advanced IT solutions to the engineering industry, employing a large number of staff in Sites across the country. The organization underwent considerable change in the mid-1990s in order to improve its competitive position, with a much greater emphasis on external pressures. Even though Omega is a highly standardised organisation seeking consistency in all its practices we have evidence...

    At-will employment, Employment, Job satisfaction 1746  Words | 5  Pages

  • Ch02 Job Order Costing 2

    Chapter 2 Job Order Costing Learning Objectives After studying this chapter, you should be able to: [1] Explain the characteristics and purposes of cost accounting. [2] Describe the flow of costs in a job order cost system. [3] Explain the nature and importance of a job cost sheet. [4] Indicate how the predetermined overhead rate is determined and used. [5] Prepare entries for jobs completed and sold. [6] Distinguish between under- and overapplied manufacturing overhead. 2-1 Preview of Chapter...

    Accounts receivable, Cost accounting, Costs 3129  Words | 63  Pages

  • PROCESS COSTING

    Job Costing Job costing is the process of tracking the expenses incurred on a job against the revenue produced by that job. Job costing is an important tool for those who are pairing a relatively high dollar volume per customer with a relatively low number of customers. For example, building contractors, subcontractors, architects and consultants often use job costing, whereas a hardware store or convenience store would not use job costing. Job costing using accounting software enables you to...

    Chocolate, Chocolate liquor, Cocoa butter 1801  Words | 6  Pages

  • Contract Costing

    Contract closing a method of costing large projects, where the contracted work will run over several accounting periods Every organisation will have its own costing system with characteristics which are unique to that particular system. However, although each system might be different, the basic costing method used by the organisation is likely to depend on the type of activity that the organisation is engaged in. The costing system would have the same basic characteristics as the systems...

    Cost, Cost accounting, Costs 881  Words | 3  Pages

  • Absorption Costing

    Absorption Costing -Overview 1. Overview of Absorption costing and Variable Costing 2. Review how costs for Manufacturing are transferred to the product 3. Job Order Vs. Process Costing 4. Overhead Application -Under applied Overhead -Over applied overhead 5. Problems with Absorption Costing 6. Concluding Comments Absorption Costing The focus of this class is on how to allocate manufacturing costs to the product. -Direct Materials -Direct Labor -Overhead Absorption...

    Cost, Costs, Expense 975  Words | 5  Pages

  • Exercise 18

    disadvantages of grid and free-flow layout arrangements? | ADVANTAGES | DISADVANTAGES | GRID LAYOUT | Easy to locate merchandiseCost-efficientEasily accessible for customersCustomer familiarityEase in cleaningSimplified securityPossibility of self-service | Limited browsingLimited creativity in décor (Plain and uninteresting)Stimulation of rushed shopping behavior | FREE-FLOW LAYOUT | Incread creativity in decor items to display?sed impulse buyingVisual appealFlexibility | Possible confusionWaste...

    Customer, Marketing, NCR Corporation 996  Words | 4  Pages

  • Acc/561 - Week 4 Costing Methods

    Week 4: Costing Methods The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise. Management Strategies A virtual corporation is described as a technology-linked network of companies, suppliers, and customers...

    Assessment, Cost, Costs 723  Words | 3  Pages

  • Week Four Costing Method Paper

    Costing Methods Paper In 1983 a former Pittsburg Steelers’ Player Franco Harris formed a company called Super Bakery Inc. the company’s management had a very rough start because they monitored and followed practices in the industry too closely. Tracking and following the company’s practices hurt the growth of the industry and customers were not satisfied with performance Franco Harris and his staff needed to create strategies that will help the company improve customer’s satisfaction at the same...

    Activity-based costing, Baking, Consultative selling 797  Words | 3  Pages

  • Process Costing

    PAPER On Process Costing Submitted in fulfillment of the requirements for the 3rd SEM MBA Management Accounting and Control Systems Submitted to: Submitted by: Prof. G V M Sharma Vandana Rajput Dept. of MBA 1PB11MBA60 INTRODUCTION: Process costing is a form of operations costing which is used where standardized homogeneous goods are produced. This costing method is used in...

    Cost, Cost accounting, Cost overrun 1430  Words | 5  Pages

  • Activity Based Costing Systems

    Activity-Based Costing Systems Research Paper |Matthew East | | | | | | ...

    Activity-based costing, Cost, Cost accounting 1182  Words | 5  Pages

  • Squeaky Horn Company

    For the Squeaky Horn Company, it faces with decreases in profitability. To solve this problem, the company has two alternatives. Alternative 1: Status Quo Alternative 2: Charge minor band repairs on a flat-fee basis and pay the band repairers on per-job basis and charge delivery fees. Alternative One The company can choose to stick to its original costing system and make no changes to the current business model. Advantages: ...

    Profit 1100  Words | 4  Pages

  • Activity Based Costing

    Activity based costing (ABC) is a relative new way to allocate costs to specific processes and services. This system assures that the costs are accurately distributed to the products or services that generated them. ABC illustrates costs more accurately, giving management insight to the cost associated with certain business activities. ABC extends the decision-making skills of management by expanding on traditional costing (job order costing/process order costing) techniques. However, since ABC's...

    Activity-based costing, Cost, Cost accounting 1192  Words | 4  Pages

  • Kaizen Costing

    Kaizen Costing What is Kaizen costing? Kaizen is a Japanese term that means continuous improvement. Kaizen events can be defined as making improvements through a process that emphasize small incremental amounts rather than large or radical improvement. Therefore in order to achieve this kaizen costing not include only continuous cost reduction but also continuous improvement of performance by increase the efficiency throughout the process. Why we need Kaizen costing? Market prices of a product...

    Cost, Cost accounting, Cost-benefit analysis 861  Words | 3  Pages

  • Hogle company job ordering costing

    Hogle CompanyJob Order Costing Example Hogle Company is a manufacturing firm that uses job-order costing. On January 1, the beginning of its fiscal year, the company’s inventory balances were as follows: Raw materials $20,000 Work in process 15,000 Finished goods 30,000 Prepaid Insurance 10,000 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company estimated that it would work 75,000 machine hours and incur...

    Cost, Costs, Finished good 316  Words | 1  Pages

  • Job Order Costing-Defects, Spoilage and Scrap

    JOB ORDER COST SYSTEM (Accounting for Defective, Spoiled Goods and Scrap) Learning Objectives: 1. Review of Cost Accounting Cycle 2. Accounting for Defective Goods 3. Accounting for Spoiled Goods 4. Accounting for Scrap Learning Objective # 1 - Cost Accounting Cycle Cost Accumulation Method: - Product or Manufacturing Cost o Actual Cost System o Normal Cost System ▪ Physical...

    Cost accounting, Cost of goods sold, Inventory 774  Words | 6  Pages

  • Job Order

    CHAPTER 20 Job Order Cost Accounting ASSIGNMENT CLASSIFICATION TABLE Brief Exercises A Problems B Problems Study Objectives 1. Explain the characteristics and purposes of cost accounting. Describe the flow of costs in a job order cost accounting system. Explain the nature and importance of a job cost sheet. Indicate how the predetermined overhead rate is determined and used. Prepare entries for jobs completed and sold. Distinguish between under- and overapplied manufacturing overhead. Questions...

    Accounts receivable, Cost accounting, Costs 7403  Words | 40  Pages

  • Job Order Cost

    Job Order Cost System There are two main cost accounting systems used: Job order cost systems and Process cost systems.  Both have very distinct differences that help each specialize in a certain type of manufacturing company.  The job order cost system in particular is used to "provide product costs for each quantity of a product that is manufactured." When a product is called to be manufactured, then it is called a job.  Once the job is ordered, the manufacturing company must go through a flow...

    Accounts receivable, Cost, Cost accounting 1179  Words | 3  Pages

  • Customer Service Paper 1

    January 18, 2014 “Types of Jobs” Customer Service Positions There are several types of customer service jobs out in the world that have certain requirements and back rounds that need to be met in order to qualify for a certain job. I found a job post on Monster.com for a customer service management position through the company Ecovacs Robotic Inc. located in Glendale, California. A customer service manager is to provide excellent customer service policy for the organization, develop a customer...

    Cashier, Customer, Customer relationship management 1402  Words | 6  Pages

  • job order costing

    Greeting Inc. has operated for many years as a nationally recoginzed retailer of greeting cards and small gift items. It has 1500 stores throughout the united States located in high-traffic malls. as the stock price of many other companies soared, Greeting's stock price remained flat. as a result of a heated 2013 shareholders'meeting , the president of Greetings, Robert Burns, came under pressure from shareholders to grow Greeting's stock value. As a consequence of this pressure, in 2014 Mr. Burns...

    Cost, Costs, Frame 810  Words | 2  Pages

  • Activity Based Costing

    When it comes to a company, there are many factors that must be taken into consideration. For instance: location, products/services, branding, advertising, marketing etc. But even with all that taken care of how will the managers, auditors and even employee’s know if they are being successful or not? This is where strategies of accounting come to play. A very successful method is Activity Based Costing. This method has continued to help companies by keeping track of their spending and figuring out...

    Activity-based costing, Balanced scorecard, Cost 2757  Words | 7  Pages

  • Quiz: Inventory and Process Costing Systems

    Week 2 : Job Order and Process Costing Systems - Quiz ------------------------------------------------- Top of Form Time Remaining: |    | Page:  1  2  | 1. (TCO F) Computing unit product costs involves averaging in:     | Job-Order Costing | Process Costing | A | Yes | No |   | B | Yes | Yes |   | C | No | Yes |   | D | No | No |   | (Points : 5) |       Choice A.       Choice B.       Choice C.       Choice D. | 2. (TCO F) Process costing would be appropriate...

    Cost, Costs, Employment 798  Words | 5  Pages

  • Backwoods Mail Order Company

    Backwoods is a company that specializes in outdoor supplies and apparel, and conducts its business through telephonic and mail order means. Backwoods employs forty people in the customer orders division who are primarily responsible for taking customer orders, answering questions and complaints, processing returns, and the like. The operating manager of Backwoods' customer service department is Gerald Banks. Banks is interested in conducting a training program for his department in an effort...

    Customer, Customer service, Practice 1127  Words | 4  Pages

  • Abc Company - 1

    ABC Company Randall K. Howell ACC 206: Principles of Accounting II Don Fey March 4, 2013 The ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles, introducing the new project to build cedar dollhouses by shingle scrap materials for reaching $3 million annual sales within the next 3 years. Explain the overall risk profile of the ABC Company based on current economic and industry issues. In order to help out the CEO I prepare reports that will...

    Cost, Financial accountancy, Industry 1244  Words | 4  Pages

  • Shared Service Costing

    Shared Services Costing Solution Value Driver: Helps in identifying correct adoption of costing method which facilitates a transparent cost chargeback to Business Units (recipient of shared services) with granular insight of the cost constituents. Introduction: In today’s highly cost conscious environment, enterprise wide cost savings can be achieved by consolidating common work and infrastructure by using Shared Services units. But Business units often complain that Shared Services end up costing...

    Better, Cost, Costs 554  Words | 3  Pages

  • Product and Service Costing

    CHAPTER 5 PRODUCT AND SERVICE COSTING:  A PROCESS SYSTEMS APPROACH LEARNING OBJECTIVES AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: 1. Describe the basic characteristics of process costing, including cost flows, journal entries, and the cost of production report. 2. Describe process costing for settings without work-in-process inventories. 3. Define equivalent units, and explain their role in process costing. 4. Prepare a departmental production report using the FIFO method...

    Conversion of units, Cost accounting, Costs 7113  Words | 31  Pages

  • Purchase Orders

    better estimate costs, the company recently adopted an activity-based costing system. Last year, the company incurred $300,000 in overhead costs. Based on an intense study of their company, the following activities, allocation bases, and percentages of overhead costs were determined: Activity | Allocation Base | Proportion of Overhead Cost | Purchasing | Number of purchase orders | 25% | Materials processing | Number of square feet | 50% | Sales | Number of sales orders | 25% | The number...

    Allocation, Cost, Costs 558  Words | 3  Pages

  • Critically Examine the Use and Shortcomings of Standard Costing and Variance Analysis

    According for Management, standard cost is a planned or forecast unit cost for a product or service, which is assumed to hold good given expected efficiency and cost levels. It represents a target cost and is useful for planning, controlling and motivating within an organisation. In order to be able to apply standard costing it must be possible to identify a measurable cost unit. This can be a unit of product or service but it must be capable of standardising, for example: standardised tasks must be involved...

    Assembly line, Cost, Cost accounting 1934  Words | 6  Pages

  • Donner Company Case

    Case: Donner Company EXECUTIVE SUMMARY The Donner Company is a manufacturer of printed circuit boards. They need to address several issues in their supply chain operations to improve their service level because net income in the month of September has drastically decreased. Before September, growth was steadily increasing every month. They found that the major problems include unpredictable bottlenecks in manufacturing, lower than expected productivity and lower than expected quality...

    Bottleneck, Breadboard, Choke point 1308  Words | 5  Pages

  • job costing

    JOB COSTING JOB COSTING Cost object is a unit or multiple units of a distinct product or service called a job. Product or service is A single unit such as: 1.Specialised machine done at Hitachi. 2.A construction project managed by L & T. 3.Advertising campaign produced by Saatchi and Saatchi. Multiple identical unit such as: 1.Agni missile for Ministry of Defense manufactured by HAL. JOB COSTING SERVICE SECTOR JOB COSTING MERCHANDISING SECTOR - Audit engagements done - Special promotion of...

    Cost, Cost accounting, Costs 1943  Words | 37  Pages

  • General Electric Company Financial Analysis

    Business Analysis II: General Electric Company Financial Analysis Cristina Mota Crespo University of Phoenix MGT/521 Management September 26, 2012 Prof. Elsie Jimenez-Galarza General Electric Company Financial Analysis This essay is continuation of the financial evaluation from last week; we had to choose a company among the Fortune 500 in my case I chose GE Company. This Finance is about the study of money, it helps managers and senior leadership in an organization...

    Annual report, Balance sheet, Enron 1925  Words | 6  Pages

  • Exercise 1-2

    400 July 20th, 2013 Exercise 1 Page 22 Questions 24, 25, 28, 30 and 37 24: Strategic Management is often referred to as the capstone course in business administration because it provides a way of “formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.” This type of management requires skill and critical thinking in all aspects of the business to create a plan that will make the company prosper in the overall scheme...

    Management, Mission statement, Non-profit organization 1243  Words | 5  Pages

  • Costing Techniques

    Absorption costing Absorption costing is a costing technique in which all the costs associated with the production of a good or service are accounted for. It is used by companies to create a complete picture if their financial situation. It takes into account both variable and fixed costs. The advantages of a company using absorption costing is that it recognizes the importance of fixed costs in production this ensures that all costs are accounted for. When production remains constant but sales...

    Cost, Cost accounting, Costs 1295  Words | 4  Pages

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