BYP 20-3 - the manufacturing process and the job order...

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The AP’s BYP 20-3 April 30, 2009 William Copeland, Ciara Dortch, Abimbola Erogbogbo, Banyei Isoh, Juanese Kennedy, Zachary Todd
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A. Parlex management discusses the job order cost system employed by their company. What are several advantages of using the job order approach to costing? Job order costing systems are most effective when many different products are produced each period. In job order costing, costs are accumulated by jobs, orders, contracts, or lots. One advantage is that the work is done to the customer's specifications. Each job order typically has its own distinguishing characteristics. The main objective of a job order costing system is to compute the cost per job. The job and its associated costs are identified at each point in
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Unformatted text preview: the manufacturing process, and the job order costing system measures costs for each completed job, as opposed to set time periods. B. Contrast the products produced in a job order environment, like Parlex, to those produced when process cost systems are used. ♦ Job order products are produced for specific jobs. Job order products include wedding cakes, wedding invitations, production of movies, or anything that is engraved as a gift. Each job order product has its own specific characteristics. Process cost systems manufacture large quantities of similar products. Examples of process cost products include cereal, gasoline, automobiles, blank CD’s....
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This note was uploaded on 05/06/2010 for the course BUAD Buad 381 taught by Professor Proctor during the Spring '10 term at Morgan.

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BYP 20-3 - the manufacturing process and the job order...

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