šŸ·ļø LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION ā†’
Log in
HomeStudy Guides420,000CA160,000

ACC 406 Midterm: Chapter 5 - 9

282 views14 pages
amethystgoat54
7 Mar 2012
School
Ryerson University
Department
Accounting
Course
ACC 406
Professor
Vincent Cappelli

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Can be divided into 2 major parts, depending on whether or not their products/services are unique: job order accounting system: Ex: tailor making suits, construction company that remodels homes, service station that fixes your car, lawyer who handles your real estate transaction: process costing accounting system: Characteristics of the production process will determine whether it is a job or process. Firms produce large quantities of similar or homogenous products. Ex: food, cement, petroleum, and chemical firms. One liter of paint is the same as another liter, one bottle of aspirin is the same as another. Cost of one unit or a product is identical to the cost of another. Process firms accumulate production cost by process or by department for a given period of time, output for the process for that period of time is measured. Unit costs are compared by dividing process costs for the given period by the output of the period.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

ACC 406 Chapter 5: Chapter 5 - Job Order Costing
amethystgoat54
ACC 406 Lecture Notes - Lecture 6: Cost Accounting, Aspirin, Financial Statement
apricotraccoon744
ACC 406
Final Exam
Study Guide
ACC 406- Final Exam Guide - Comprehensive Notes for the exam ( 28 pages long!)
lilacworm2

Related Questions

Process Cost Accounting & Cost-Volume-Profit Analysis

This module focuses on measuring costs in process production companies. We explain process production, describe how to assign costs to processes, and compute and analyze cost per equivalent unit. Discuss two of the three topics:

What is meant by equivalent units of production, and why are they important when a process costing system is used?

What are the four steps in accounting for production activity in a period?

Job order costing and process costing are two major costing systems used in manufacturing. Briefly contrast the characteristics of these two systems.

All of the following statements are true regarding cost accounting systems except

a. A company must use either a job order cost system for all of its products or services or a process cost system for all of its products or services - it cannot use both

b. A company may use a job order cost system for some of its products and a process cost system for other products.

c. Managers use product cost from the cost accounting system for setting product pricing, controlling operations, and developing financial statements.

d. A job order cost system provides product costs for each quantity of product that is manufactured.

Ā 

Which characteristic is the same in both job order costing systems and process costingā€‹ systems?

a. Types of product cost

b. Flow of costs through the accounts

c. Number ofā€‹ Work-in-Process Inventory accounts

d. Method of record-keeping

Ā