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Unformatted text preview: Chapter3: Product Costing and Cost Accumulation in a Batch Production Environment Types of Product-Costing Systems The detailed accounting procedures used in product-costing systems depend on the type of industry involved. Two basic sets of procedures are used: job-order costing and process costing. Job-Order Costing Systems Job-order costing is used by companies with job-shop operations or batch-production operations. In a job-shop environment, products are manufactured in very low volumes or one at a time. Examples of a job-shop environment include feature film production, custom house building, ship building, aircraft manufacture, and custom machining operations. In a batch-production environment, multiple products are produced in batches of relatively small quantity. Examples include furniture manufacture, printing, agricultural equipment, and pleasure boat production. L earning O bjective 3 Distinguish between job-order costing and process costing....
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This note was uploaded on 02/26/2012 for the course MGMT 201 taught by Professor Rowe during the Fall '08 term at Purdue University-West Lafayette.
- Fall '08