Running Head: APPLIED MANAGERIAL ACCOUNTING: PHASE 2 INDIVIDUAL PROJECT

APPLIED MANAGERIAL ACCOUNTING
ACCT614-1304B-02
Phase 2 Individual Project
Aliyah W. Meehan
Colorado Technical University Online

ABSTRACT
In this Assignment I will attempt to do several things. I will introduce a new 1.5 gigabyte computer memory chip on behalf of EEC while using a job order costing system, which is a costing system where costs are to be collected then assigned to different units of production for each unique job, or process costing system, which is a costing system that is known to accumulate production costs by using a department or process’s data over a specific period of time in order to report the costs of a new product. I am going to focus and highlight the many differences within the various systems in use to do this job. I will also attempt to describe how these selected systems will work for EEC in order to track the costs of these products. Furthermore, my job in this assignment will be to identify the actual cost driver in order to explain the pattern and process of cost tracking. I will then go on to provide examples of products that the EEC’s firm could offer in order for a job-order costing system to be appropriately applied.
•Should EEC use a job-order costing system, which is a costing system where costs are collected and assigned to units of production for each individual job, or a process costing system, which is a costing system that accumulates production costs by process or department for a given period of time, to report the costs of this new product? ◦How are the systems different?
I believe that EEC should most definitely use a job-order costing system. “Job order costing systems are simply the various components of a much broader form of accounting system that may be used by a given company or organization. It is known that their main