Managerial Accounting ACCT310-1205B-06 January 27, 2013 Job order costing is used in situations where there are different products that are being produced each period. According to accounting for to management (2000), the costs are traced to the jobs and then the cost of the jobs that are divided by the number of the units in the job that are arrive at the cost per unit (para. 1). The type of industry that uses this type of system are places like the Hospitals, laws firms, movie studios, advertising
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pertaining to Super Bakery, Inc. This paper will layout the strategies that the management of Super Baker, Inc. used, as well as discuss why management thought it was a good idea to an activity-based costing system into their business. The comparison of a job order cost system and a process order system will be analyzed to decide which would be the best fit for Super Bakery, Inc. Super Bakery, Inc. was founded by ex-National Football League Pittsburgh Steeler play Franco Harris his vision was to
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likely to use a job costing system or process costing system? Describe the specific characteristics of each system and provide several examples (i.e. at least two) from companies in your community for each system (i.e. at least four companies should be described). Companies use both job costing system and process costing systems. It is important to understand the differences in the two systems. According to Blocher (2013), a job costing system is a product costing system in which it collects
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Activity- Based Costing & Process Costing Job Order Costing: 1. Many different jobs are worked on during each period, with each job having different production requirements. 2. Costs are accumulated by individual job. 3. Job cost sheet is the key document controlling the accumulation of costs by a job. 4. Unit costs are computed by job on the job cost sheet (Similarities between Job Order and Process Costing System, nd). Process Costing: 1. A single product is produced either on continuous
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Costing Methods Paper Erica Rice ACC/561 18 February 2013 Edward Hastings Costing Methods Paper What strategies did the management of Super Bakery, Inc. use? Super Bakery’s challenges are to control cost by reducing the overhead for serving their customers in different parts of the country, and by doing this they can use the ABC method; Activity-Based Costing System to enhance control over overhead costs and under ABC, the company can trace many overhead costs directly to activities by allowing
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cost figured using the Job Costing System. I will use the 7 steps in order to determine the cost allocations for the job. I will then complete a Job Cost Sheet. I will breakdown the materials needed, the price for the salary of the designer, the labor and the overhead. After that I can then determine how much the job will cost and in turn the amount to charge the customer in order to make a profit. Job 2 is purely s manufacturing job. I will use the process costing system. The 7 step from the order
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be visible to all students via LMS on a date that will be announced soon. GOOD LUCK! Q1. Draw Job-Order Costing Document Flow Summary. (5) Job Cost Sheet Material Requisition Manufacturing overhead Cost Q2. What are the differences Between Job-Order and Process Costing?(5) Job costing involves the detailed accumulation of production costs attributable to specific units or
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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
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Costing Methods ACC/561 May 14, 2012 Costing Methods According to Kimmel, Weygandt, and Kieso (2009), “a traditional costing system allocates overhead on the basis of a single predetermined overhead rate.” Although this may be the best costing method for some businesses, not all businesses are the same. Created in 1990, Super Bakery, Inc. started by using the traditional costing methods to determine costs; however, quickly came to realize that the methods were not taking individual markets
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Job Costing Job costing is a technique used where jobs are performed to meet the customer’s standards. It usually involves accounting for indirect and direct costs. For example, In a situation where you surveyed a week in business operations in what had looked like to be a busy week, but then the next day a bookkeeper shows a report that says the business lost money. One report says that integrators as a cohort are improving at estimating the materials side of job costing, but as jobs change and
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