1.Describe job-costing and process-costing systems. Explain when it would be appropriate to use each.
2.In a job-costing system, explain why it is necessary to apply indirect costs to production through the use of a manufacturing overhead cost allocation rate.
Which of the following characteristics applies to "processcosting", but does not apply to" job order costing"?
a. the need for averaging
b. the use of equivalent units of production
c. separate, identifiable jobs
d. the use of predetermined overhead rates.
EEC currently uses a basic standard cost system. Management knows very little about other concepts of costing and the benefits of having multiple costing methods. Your superior has asked that you and your team put together a presentation to management explaining various costing concepts as it relates to EEC.
As an EEC corpor
Job costing, process, costing. In each of the following situations, determine whether job costing or processcosting would be more appropriate.
a). A CPA firm
b). An oil refinery
c). A custom furniture manufacturer
d). A tire manufacturer
e). A textbook publisher
f). A pharmaceutical company
g). An advertising agency
Describe the differences between job-order costing and processcosting. Describe the types of situations where each might be used. What characteristics of each process make it most appropriate for these situations?
My trophies company produces thousands of medallions made of bronze, silver, and gold. The medallions are identical except for the materials used in their manufacture. What costing system would you advise the company to use and why?