I need 2 responses to each student discussion board post. Please keep separate and in order. each post should be at least 150 words each with references Turnitin is being used to check for plagiarism and Please use APA format. 300 words total
Collapse Subdiscussion Brandy Havens Brandy Havens
XXXXXXXXXX:23am Apr 4 at 6:23am
Hi Marcus. You identified some important differences between job-order costing and process costing. Normally, when we see many units of identical products, we know that we are dealing with a process costing system. However, many of these companies do product multiple products.
Class, let’s explore an example. We know that Frito-Lay makes many different snack products. Among other products, they make regular potato chips, Doritos, and Cheetos. While they would use a process costing system for each product, do you think it would be important to track the material and labor cost separately for each different product? Why or why not?
Joseph Ausanio
XXXXXXXXXX:15pm Apr 4 at 7:15pm
What is Job order costing and process costing? They both have an important part in the manufacturing process depending on what type of organization and product is being made. Some key differences are “job order costing and process costing are systems and allocating costs to units of production. The key difference between job order costing and process costing is that job costing is used when products are manufactured/ based on customer specific orders whereas process costing is used to allocate costs in standardized manufacturing environments. Accurate cost allocation is vital irrespective of whether the product is tailor-made or standardized since costing effects the pricing decisions” (Difference between.com(Links to an external site.)Links to an external site., Dili 2017).
So, as you can see the cost method truly will depend on the organization, the product being produced and how it’s being produced.
As it pertains to the process cost, it’s all about mass production with limited specific needs. A good example would be Deer Park 16 oz water bottles, Benjamin Moor paint, and name brand cereal brands.
As it pertains to Job order costing, I believe you have to realize the individuals involved in doing the work and the specific elements they bring in to produce the product being made. I think my current position at JP Morgan Securities is a good example of Job order costing. I have individual clients for my investment firm. I can see that each client has a specific need and task that I need to customize for them. So, the expense for each client will vary based on what needs to be done for them.
References:
Process Costing Definition | 5 Steps for Process Costing. (2019, February 06). Retrieved from https://strategiccfo.com/process-costing/(Links to an external site.)Links to an external site.
DiliDili. (2017, March 28). Difference Between Job Order Costing and Process Costing | Job Order Costing vs Process Costing. Retrieved from https://www.differencebetween.com/difference-between-job-order-costing-and-vs-process-costing/
Rubrics/Marking Guidelines :
I need 2 responses to each student discussion board post. Please keep separate and in order. each post should be at least 150 words each with references Turnitin is being used to check for plagiarism and Please use APA format. 300 words total