MAS BY LIBBY REVIEWER.docx - JOB ORDER COSTING(Chap 2 The...

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JOB ORDER COSTING (Chap 2) - The goal of managerial acctg is to provide managers with relevant and timely information to help them make decisions. - Cost information is one of the most important types of information managerial acctg provides. 2 TYPES OF COST SYSTEMS 1. Job order costing 2. Process costing PROCESS COSTING - Used by companies that make standardized or homogeneous(similar) products or services - Produced in a continuous manufacturing process in which raw materials are put through a standardized production process so that each unit of the final products comes out identical to the next - Breaks the production process down into its basic steps, or processes and then averages the total cost of the process over the number of units produced. AVERAGE UNIT COST= total mnfg cost/ total units produced JOB ORDER COSTING - Offer customized or unique products or services. - Each unit or customers differs from the next.
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