Job Order Costing :: essays research papers

go costing is used for homogeneous wares (continuous flow processes such as producing cans of soda). pipeline-order costing is used in situations where the fundamental law 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 achievement.The endeavor of a job order costaccounting system is to appoint and accumulatecosts for each job, i.e., an order, a contract, a unitof production, or a batch. Job order costingshould be used if the production or service isbeing performed to meet customer specificationsor requirements, if different compvirtuosonts aremade for inventory, or projects are undertaken toconstruct real property. Job order costing allows much control, less estimation, and more directand honest al office of costs.. Differences between job-order and process costing. The differences between job-order and process co sting return because the flow of units in a process costing system is more or less continuous and the units are essentially indistinguishable from one an separate. Under process costinga. A single homogenous product is produced on a continuous basis over a big period of time. This differs from job-order costing in which many different products may be produced in a single period. b. Total costs are roll up by department, rather than by individual job.c. The department production promulgate is the key document showing the accumulation and disposition of cost, rather than the job-cost sheet.B. Overview of Process Costing. Manufacturing costs are accumulated in processing departments in a process costing system. A processing department is any location in the organization where work is performed on a product and where materials, labor, and smasher costs are added to the product. Processing departments should also have two other features. First, the activity performed in the processi ng department should be essentially the resembling for all units that pass through the department.