ACC 406 Chapter Notes - Chapter 5: Cost Accounting, Direct Labor Cost, Finished Good
3 Nov 2014
School
Department
Course
Professor
Document Summary
Acc406 chapter 5: job order costing a) job order costing: firms operating in job order industries produce a wide variety of services or products that are quite distinct from each other: the key feature is that the cost of one job differs from that of another job and must be kept track of separately, examples of service firms that use job order costing are law firms, accounting firms, dental offices, automobile repair, and architectural firms. Process production and costing: firms in process industries mass produce large quantities of similar or homogeneous products: the key feature is that the cost of one unit of a product is identical to the cost of another, direct materials and direct labor is fairly easy to trace to individual jobs, overhead is not easily traced to individual jobs so it is applied to production b) calculate predetermined overhead rate then assign overhead to units/services.
