ACC 117 Lecture Notes - Lecture 28: Perpetual Inventory, Uptodate, Seating Capacity
4 Dec 2020
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Definition- involves the measuring, recording, and reporting of product costs: cost accounting system. Consists of accounts for the various manufacturing costs. Use of perpetual inventory system that provides immediate, up-to-date information on the cost of a product. Two types of cost accounting- job order and process: job order cost system. Costs are accumulated and assigned to each job individually. Unique products are costed out when the job is completed. The company assigns costs to each job or batch of goods. The objective is to compute the cost per job: process cost system. Costs are accumulated and assigned to job after a period of time. The product is usually of a like kind of nature. Accumulates product-related costs for a period of time instead of assigning costs to specific products or job orders: general understanding that we are accumulating costs in different inventory accounts until the time that we sell them.
