Chapter 15 - Chapter 15 Job order cost accounting Cost...

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Chapter 15Job order cost accounting Cost accounting system: accounting system for manufacturing activities based on the perpetualinventory system, which continuously updates records for costs of materials, goods in process,and finished goods inventories.General accounting system: accounting system for manufacturing activities based on the periodicinventory system.Job order production: production of special-order products; also called customized productionJob lot: production of more than one unit of a customized product or serviceEvents in job order costing1)Predict the cost to complete the job2)Negotiate price and decide whether to pursue the job3)Schedule production of the jobTarget cost: maximum allowable cost for a product or service; defined as expected selling priceless the desired profitPoint: Some jobs are priced on a cost-plus basis: The customer pays the manufacturer forcosts incurred on the job plus a negotiated amount or rate of profit.Common   overhead   items   are   depreciation   on   factory   buildings   and   equipment,   factorysupplies, supervision, maintenance, cleaning, and utilities.Job order cost accounting system:

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