Acct - Chapter 17

Acct - Chapter 17 - Chapter17:JobOrderCostSystem Cost of...

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Chapter 17: Job Order Cost System Cost of Accounting System Overview *Cost accounting systems accumulate manufacturing costs for the goods that are produced. *This info is used my managers to est prices, control operations and develop financial statements. *Two main types of cost accounting systems for manufacturing operations Job Order Cost System provids a saperate record for the cost of each quantity of product that passes through factory. A particular quantity of product is termed job Where is it best suited? industry that manufacture custom goods to fill special orders from customers OR produce a wide variety pf products for stock. Manufactures that use a job order cost system are called job shops. eg: Process Cost System - costs are accumulated for each of the departments or processes within the factory. Where is it best suited? Manufacturers of units of product that are not distinguishable from each other during a continuous production process. eg: oil refineries, paper products, chemical processors and food
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Acct - Chapter 17 - Chapter17:JobOrderCostSystem Cost of...

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