Job Order Costing :: essays research papers

Process cost is apply for homogenous harvest-tides (continuous flow cognitive processes such as producing cans of soda). Job-order be is used in situations where the organization offers many contrary 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 production.The purpose of a job order cost report system is to assign and accumulatecost 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 guest specificationsor requirements, if different components aremade for inventory, or projects are undertaken to fashion real property. Job order costing allows much control, less estimation, and more directand reliable allocation of costs.. Differences between job-order and process costing. The differences between job-order and process costing occur b ecause the flow of units in a process costing system is more or less continuous and the units are basically indistinguishable from one another. Under process costinga. A genius homogenous product is produced on a continuous basis over a long 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 accumulated by surgical incision, rather than by individual job.c. The segment production report is the key document showing the accumulation and dip of cost, rather than the job-cost sheet.B. Overview of Process Costing. Manufacturing costs are accumulated in process 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 overhead costs are added to the product. Processing departments should also watch two other features. First, the activity performed in the processing department should be essentially the same for all units that pass through the department.