BUSI 601 job costing system or process costing system week 5

BUSI 601 job costing system or process costing system week 5

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Job and Process Costing Systems A job order costing system is used in situations where many different products are produced each period. According to the text, job costing is a system that accumulates costs and assigns them to specific customers, jobs, contracts, or projects (Blocher, et al ., 2010). For example, a clothing manufacture would typically make many different types of jeans for both women and men during a single month. In a job order costing system, costs are associated to the jobs and then the costs of the job are divided by the amount of total units in the job to obtain an average cost per unit. Job order costing system can be extensively used in the service industry. In my community, law firms, hospitals, movie studios, advertising agencies, accounting firms, and repair shops all use a variety of job order costing system to collect costs for the billing and accounting purposes. Moreover, in addition to a manufacturing type firm, the similar concept and procedures are exercised by many service companies. Although the concept of
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This note was uploaded on 01/21/2011 for the course MKG 2300 taught by Professor Perez during the Spring '10 term at University of South Florida - Tampa.

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BUSI 601 job costing system or process costing system week 5

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