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8 Cards in this Set
- Front
- Back
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What two techniques are designed to support large expensive items, customized, special order, small lots OR large batch, homogeneous production?
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Job Order & Process Costing
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What is Job Order Costing?
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A costing technique that supports large expensive heterogenous items, customized special order, individual or small lots
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What is Process Costing?
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A costing technique that supports large batches, homogeneous products
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In a job order cost system, where are costs accumulated?
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In an individual WIP acct (job order cost sheet)
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What is done with the total for individual WIP accts under the job order cost system?
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The totals are transferred to the WIP control acct
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What's the process of a job order cost system?
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1. Accumulate costs in an individual WIP acct at the actual costs.
2. Tsfr the total from the individual WIP acct to the WIP ctrl acct. 3. Apply FO. Charge to WIP ctl and FOA at the std costs. 4. In over or under amts in WIP is decreased from or charged to CGS. 5. Costs flow from FG to CGS. |
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What is the acronym utilizing the job order cost system?
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A Accumulate costs
T Tsfr total A Apply FO C Costs flow |
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What's the main issue in process costing?
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Since costs of goods are not individually tracked, the problem lies in determining how many units were products for the period and assigning a cost to them.
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