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    Cost accumulation system

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    *************choose any company *************just need a basic understanding
    Identify and describe the type of cost accumulation system that was used.
    Explain how the system was used and, specifically, how overhead was allocated.
    Discuss how the use of cost accumulation enhanced the company's operations.

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    https://brainmass.com/business/management-accounting/cost-accumulation-system-606995

    Solution Preview

    Response addresses the query posted in 787 words with APA References

    //Cost accumulation system shows the method of accumulation of cost. There are two methods that include job costing and process costing for the cost accumulation system. We will explore the cost accumulation system of General Motors and the way to use this method in the operating activities.//
    The Cost Accumulation System is a process by which all the details of expenses incurred during the operation of the business are to be kept. There are mainly two methods for cost accumulation system, which are job costing method and process costing method. The job costing method accumulates costs over a job number, whereas process costing method accumulates costs over a particular process or department (Drury, 2013).
    General Motors uses the process costing method because it is a manufacturing company and it has several processes to be performed before making its final product that is related to the automobile industry. The process costing method is suitable for the company because there are a number of processes and it is easy to accumulate costs over each process during a specified period of time in order to accumulate all the cost of final product of the company (Weygandt, Kimmel & ...

    Solution Summary

    The expert chooses a company and identifies and describes the types of cost accumulation system that was used. How cost accumulation enhanced the company's operations is examined. Response addresses the query posted in 787 words with APA References.

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