System which continuously updates records for costs

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system, which continuously updates records for costs of materials, goods in process, and finished goods inventories. A cost accounting system also provides timely information about inventories and manufacturing costs per unit of product. Job cost sheets for these companies would differ due to manufacturing companies creating separate job cost sheets for materials that they make, and Liberty Tax Service would create job cost sheets for their services and other miscellaneous costs. While Liberty Tax Service would not have the same type of costs for materials, they may have costs for things like office supplies that are still necessary to run their business. For example, I own a small business that could be categorized as a manufacturing company. I manufacture soaps, lotions, candles, and other bath and body products. I would have much more costs for materials and ingredients, as well as, all of the office supplies that a company like Liberty Tax Service would be reporting. An example of direct labor for Liberty would be salary expenses for its employees, or tax preparers. A manufacturing company would have material expenses, such as oils, butters, fragrances, equipment used to make the products, product labels, etc. Manufacturing company costs are called direct materials, which Liberty would not have because of them providing a service and not producing products.
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BEYOND THE NUMBERS 19-7
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BEYOND THE NUMBERS 19-7 References Wild, J. J., Shaw, K. W., & Chiappetta, B. (2011). Fundamental Accounting Principles . New York, NY: McGraw-Hill/Irwin.
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