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Job Order and Process Costing Systems


1. Why is cost accumulation simpler in a process costing system than it is in a job-order costing system?

Why aren't actual overhead costs traced to jobs just as direct materials and direct labor costs are traced to jobs?

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2. Why do companies use a predetermined overhead rate rather than actual overhead costs to apply overhead to jobs?
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Would a company ever use both type of systems?

Your thoughts? Anyone?
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JobOrderandProcessCostingSystems

1.Whyiscostaccumulationsimplerinaprocesscostingsystemthanitisinajobordercostingsystem?

Answer:...