Management and Organizational Studies 3370A/B Lecture Notes - Lecture 6: Indian Railways

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Bill Dawson

Document Summary

Job order costing: used in situations where many different jobs or products are worked on each period, ex. furniture manufacturers, special order printers, repair shops, accounting services. Process costing: most common in industries that produce essentially homogenous (uniform) products on continuous basis, ex. pop, paper, bricks, convert basic raw material into homogenous products, also used by utilities that produce gas, water and electricity. Similarities: both systems have same basic purposes to assign materials, labor and overhead costs to products and provide mechanism for computing unit costs, both systems use same basic manufacturing accounts, including moh, rm, wip and fg. The flow of costs through the manufacturing accounts is same in both systems. Flow of units in a process costing system is more or less continuous. Processing department: any location in an organization where work is performed on a product and where materials, labor or overhead costs are added to the product, companies can have many or few processing departments.