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You have two basic types of manufacturing processes- continuous and discrete or job shop. A job order cost is based upon the direct materials/components and direct labor associated with making this specific final product. You would tyoically add manufacturing overhead and profit to this cost (a build up) to get to fully loaded costing and pricing. A job order cost system can be standard cost based or an actual cost build-up (time and materials) if you are making custom units.
What else can I help you with?
Is a job order cost system most appropriate when a large volume of uniform products are produced?
yes
What systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?
Job Order Cost System
A job order cost accounting system would best fit the needs of a company that makes?
Custom Machinery
The entry to record direct labor costs into production in a job order cost accounting system is?
debit factory overhead, credit wages payable
Why is cost accumulation simpler in a process costing system than it is in a job-order costing system?
Cost accumulation is simpler in a process costing system because it tracks costs over continuous production processes rather than individual jobs. In process costing, costs are averaged over large quantities of identical products, making it easier to assign costs uniformly. In contrast, job-order costing requires detailed tracking of costs for each specific job, which can be complex due to variations in materials, labor, and overhead for different jobs. This streamlined approach in process costing reduces the administrative burden and simplifies cost calculations.
Is a job order cost system most appropriate when a large volume of uniform products are produced?
yes
What systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?
Job Order Cost System
A job order cost accounting system would best fit the needs of a company that makes?
Custom Machinery
What is job order accounting?
what is the cost accounting system used by a contract manufacturing a number of identical units for multiple customers
What cost system first traces cost to activities and then to products?
Job cost
In a process cost system who is a production cost report prepared for?
In a process cost system, a production cost report is prepared by management for management. The purpose is to determine the efficiency of the production operation and examine cost reducing alternatives. An example of a business that would use a process cost system would be a manufacturer that continuously produces a homogeneous product. For example, a soda bottling company produces the same product day after day. The costs associated with producing that product include the raw materials or ingredients, direct labor and factory overhead. This is contrasted with the cost system used by a printing company. In the latter case, the company would use a job order costing system. The job order costing system would specify the costs associated with producing a particular job order. In the example of a printing company, there would be a set-up charge that would depend on the work involved in preparing the job.
The entry to record direct labor costs into production in a job order cost accounting system is?
debit factory overhead, credit wages payable
Why is cost accumulation simpler in a process costing system than it is in a job-order costing system?
Cost accumulation is simpler in a process costing system because it tracks costs over continuous production processes rather than individual jobs. In process costing, costs are averaged over large quantities of identical products, making it easier to assign costs uniformly. In contrast, job-order costing requires detailed tracking of costs for each specific job, which can be complex due to variations in materials, labor, and overhead for different jobs. This streamlined approach in process costing reduces the administrative burden and simplifies cost calculations.
Is Elmer's glue a job order cost or a process costing?
Process Costing
What is the cost accounting system that is used by a contractor manufacturing a number of specifically identifiable physical units and whose costs are normally accumulated under separate orders?
Job Order Accounting
Which one of the following is a source document that impacts the job cost sheet?
A source document that impacts the job cost sheet is a job order or production order. This document provides detailed information about the specific costs associated with a particular job, including materials, labor, and overhead. By recording these costs, the job cost sheet can accurately reflect the total expenses incurred for that job, facilitating better financial tracking and decision-making.
What is job cost?
Job Costing is the art of breaking down the specific cost of a product or service that you provide. Fixed and variable cost play the most important role in this assessment. Fixed cost are overhead or cost that won't vary such as light bill, insurance, mortgage or rent, etc. Variable cost are fuel, oil, lumber, steel, etc. The change in these cost to make a certain product and the cost of the job will change dramatically. job costing also mean production against the customer order. Total cost recorded and reported the order of job. Unit cost is also reported and recorded the order of job.
