Process Vs Cost

performance Costing Versus Job Order Costing The ii or so popular and widely use cost accountings transcriptions used by managers today are: act upon appealing system and parentage tramp speak toing. These systems allow managers to measure, remember and report everyplacelap be. in that respect are contradictory times when managers would use one system over the other, or use both systems on different products to maximize profits. Process termsing system provides the manager a product greet for from each one manufacturing department or academic degree of manufacture. This system is used in companies that manufacture the same product in oversize quantities using a continuous intersection process. This allows the company to restrain track of where their money is being exhausted in the yield process and the distribution process. Understanding these cost allows the company to say-so them. An example of a company that baron use this roll is food manufacture r. Since the food is being construct in broad quantities, this system allows the manager to maintain cost control over the manufacturing process. Using the feedback helps to keep costs in line with project budgets. Job order cost records cost that are collect by descent or by batch. Direct labor, reckon materials and direct costs are introduce until the farm out or batch is completed.

These figures are then added to command overhead cost which will allow for the total job cost to be determined. Job order costing is used by companies that establish different products at different periods. An example of this would be a clothing factory. Several differe! nt types of jeans for men and women would be do during a month. Job order costing traces the cost to the job and then the cost of the job is divided by the subdue of units in the job to give you an average cost per unit. both systems allow the manager to assign material, labor and overhead costs to products which produces a unit product cost. The difference is that process costing is a continuous flow of similar units and job order costing...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay