Post 2 - Learning Hi Linda The accumulation of costs is the same in both systems Both costing systems track the three manufacturing cost elements

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Linda McMahon 22 Apr 11 7:43 PM MST Professor and Class, What are the characteristics of a company that would be more likely to use process costing than job order costing? Process costing is typically used by companies that would mass produce a final product. There are separate steps that are done in batches but the end result is the same. This type of production using process costing would be a company that would make some type of food product like granola bars, cookies, a company that makes pens and pencils. Reference: Kinney, M.R., & Raiborn, C.A. (2011). Cost Accounting. Mason, OH: South-Western Cenage
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Unformatted text preview: Learning Hi Linda, The accumulation of costs is the same in both systems. Both costing systems track the three manufacturing cost elements: direct materials, direct labor, and manufacturing overhead. Costs are assigned to the same general ledger accounts in both costing systems. However, the methods of assigning the costs differ significantly. The number of work in process accounts Job Order - one work in process account, Process - multiple work in process accounts. Documents used to track costs Job Order - job cost sheets Process - production cost reports, just to name a few. Good post. Jack Jack...
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This note was uploaded on 07/16/2011 for the course COST ACCOU 410 taught by Professor David during the Fall '10 term at Kaplan University.

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