Purchase Solution

process costing methods

Not what you're looking for?

Ask Custom Question

Consider the following scenario:
Your CFO, in her initial work, needs to decide whether to set up a job order costing system or a process type costing system. She has asked you to make a recommendation based on the following information. You plan to meet with her in the morning. Write 4ââ?¬"6 paragraphs in response to the following, and provide support for your recommendation:

Compare and contrast job order costing to process costing methods.
What kind of system works best in what kinds of companies?
What kind of system makes sense for your company, given that you plan to start with only one version of your product but at some point in the future may offer a variety of options?

Purchase this Solution
Solution Summary

The write up gives a learned discussion on process costing methods

Solution Preview

Compare and contrast job order costing to process costing methods.
What kind of system works best in what kinds of companies?
There is a difference between job costing and process costing. Job costing means calculation of costs in different manufacturing batches or costs in construction jobs. The purpose of job costing is to identify the costs according to the job or batch. For instance, batches of different specifications are likely to cost differently. On the other hand process costing means assigning costs to different manufacturing processes. The average cost per unit is calculated by dividing the total cost by the number of units produced.
So, ...

Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

View More Free Quizzes
Related BrainMass Solutions

  • Similarities and Differences in Job Costing and Process Costing

    In your explanation, provide examples of when job order costing and process costing would be most appropriate. There are two types of costing methods: job costing and process costing.

  • costing

    Compare and contrast job order costing to process costing methods. "Process costing applies production costs to products based on the process they go through in the manufacturing process.

  • SAC

    Job costing, contract costing, process costing, operational costing and batch costing are the different methods of costing.

  • Cost accumulation-definition,methods and steps

    Methods of cost accumulation: Job costing and process costing are the methods used for ascertaining the cost accumulation.

  • job order costing systems with process type costing

    Compare and contrast job order costing to process costing methods: In job order costing, different type of jobs or orders with different production requirements are being handled in each period whereas process costing is concerned with an identical

  • Job Order Costing or Process Costing Decision (Process Costing Methods)

    378310 Job Order Costing or Process Costing Decision (Process Costing Methods) Your CFO, in her initial work, needs to decide whether to set up a job order costing system or a process type costing system.

  • Impacts of Changing from Hydrometallurgical to Pyrometallurgical

    If both processes used continuous methods of extraction, then there will be no considerable impact in the costing system, that is, the company will still be using a process costing system.

  • Job and Process Costing

    Your discussion is 423 words and gives examples of both process and job costing and discusses difficulties with the methods. Two suggestions are made to avoid the troubles.

  • Manufacturing: Process Costing in Industry

    609696 Manufacturing: Process Costing in Industry 1.Process costing differs from job order costing in the way costs are accounted for.

View More Related Solutions