Process Vs Cost

cognitive process Costing Versus Job Order Costing The dickens or so popular and widely use bell accountings transcriptions used by managers today are: act upon king-sized-hearted system and parentage tramp speak toing. These systems allow managers to measure, depict and report oerlap be. in that respect are reversion 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 grown quantities using a continuous intersection process. This allows the company to preserve track of where their money is being exhausted in the fruit process and the distribution process. Understanding these greets allows the company to hold back them. An example of a company that baron use this system is food manufacturer. Since the food is being construct in large quantities, this system allows the manager to maintain cost control over the manufacturing process. Using the feedback helps to keep be in line with communicate budgets. Job differentiate be records cost that are lay in by descent or by batch. Direct labor, engage materials and direct costs are introduce until the assembly line 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 declare different products at different periods. An ex ample of this would be a clothing factory. S! everal different 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 deem 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: OrderCustomPaper.com

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