ACC 202 WORSKSHOP TWO PROCESS VS. JOB ORDER COSTING HANDOUT FOR 2.3 DROPBOX
Download Process vs. Job Order Costing Handout for 2.3 Dropbox Review the questions below. As you watch the video Process Costing vs. Job Order Costing, take notes and answer the following questions for Dropbox submission:
Question 1. What is the difference between the types of production cycles that would be appropriately computed using process costing vs. job order costing systems? 2. What three categories of costs are accumulated in a process costing system to determine an average cost per unit? 3.
Which type of costing requires keeping cost records by product batches? 4. If a job cost record shows a job at 100% of budgeted direct materials but only 50% of budgeted direct labor and allocated factory overhead, would you expect direct materials to increase to 200% of the budget by the time the job is completed? Why or why not? 5. Which costing system would be appropriate in an oil refinery? Explain why. 6. If a company that typically produces a steady output of a standardized
product receives a special order for a modified version of the product, what should a cost accountant do to monitor the costs associated with the special order? 7. Within a service company, which type of costing system is more often applied and why?