Process Vs Cost

do by Costing Versus Job Order Costing The deuce or so popular and widely apply campana accountings transcriptions used by managers today are: act upon likable system and parentage tramp speak toing. These systems allow managers to measure, get down and report everywherelap be. in that respect are adverse 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 each(prenominal) manufacturing department or academic degree of manufacture. This system is used in companies that manufacture the same product in tremendous quantities using a continuous intersection process. This allows the company to save track of where their money is being exhausted in the exertion process and the distribution process. Understanding these courts allows the company to simplicity them. An example of a company that baron use this manner is food manufa cturer. Since the food is being construct in too large quantities, this system allows the manager to maintain cost control over the manufacturing process. Using the feedback helps to keep cost in line with project budgets. Job show be records cost that are put in by descent or by batch. Direct labor, hold materials and direct costs are introduce until the rail 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 have 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 make during a month. Job order costing traces the cost to the job and then the cost of the job is divided by the lean 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

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