BU247 Chapter Notes -Cost Driver
Document Summary
Job order costing: is an approach to costing that estimates costs for specific customer orders because the orders vary from customer to customer. (i. e. consulting, building, restaurant meal, treating a patient, the organizations providing the product or service will typically assign all direct material and direct labour costs to the job. Melting, roughing and finishing, blanking, rimming, annealing, cleaning, coin press: mint managers will use this process costing information to identify opportunities to reduce process costs, in summary the focus in process costing is to identify the cost that each process or activity used to make a product contributes to the product"s total cost, some process costing wrinkles, donald"s ducks: The issues arises in process costing is how to account for partially completed work in progress: equivalent unit of production: expresses the work equivalent in finished units of the work that has been invested in work in progress, ex.
