Purchase Solution

Job costing versus process costing

Not what you're looking for?

Ask Custom Question

Please give examples of what types of companies may engage in job-costing and what types of companies that may engage in process-costing. Be specific in your examples and support your argument from the product or service that your organization delivers.

Discuss your thoughts on the single-driver approach to allocating manufacturing overhead. What are your thoughts about how the calculation is prepared? By using budgeted costs divided by budgeted output, what types of surprises may be lurking at the end of the fiscal year.

Purchase this Solution

Solution Summary

Detailed instruction on the differences in costing methods and discussion about pros and cons of single drivers versus multiple drivers.

Solution Preview

Please give examples of what types of companies may engage in job-costing and what types of companies that may engage in process-costing. Be specific in your examples and support your argument from the product or service that your organization delivers.

First, let's describe the differences between job-order costing and process costing and the types of situations where each might be used. What characteristics of each process make it most appropriate for these situations?

Job Order Costing
This costing method is used when you have products or batches that differ from each other and so each product or batch may have different costs.

Job Order Costing tracks the costs that are assigned to each job. A job can be for many units (like a batch of coffee beans being baked) or one unit (building houses). Direct costs incurred (materials, labor) are assigned to individual jobs and overhead is assigned based on predetermined rates from overhead pools. So, each job will have their own work in ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Motivation

This tests some key elements of major motivation theories.