ADMS 2510 Chapter Notes - Chapter 5: Direct Labor Cost, Deutsche Luft Hansa, Barcode

• School: York University
• Department: Administrative Studies
• Course: ADMS 2510
• Professor: Li Zhi Ma

Document Summary

Adms 2510 chapter 5 system design: job order costing. Job order and process costing: process costing system. Used in situations where company produces many units of single product for long periods of time. Unit product cost (litre, kilogram, bottle)= total manufacturing cost / total units produced. One unit of product is indistinguishable: so each have same average cost, only applies to homogeneous units in continuous stream out of production process, job order costing system. Used in situations where many different products or services are produced each period. Clothing shops jeans for both women and men, denim blue and sky blue, etc: this order of various products is called batch or job. Then cost of jobs are divided by number of units in the job: results average cost per unit. Also used extensively in service industries for nonprofit org: used to accumulate costs for accounting pill, performance evaluation ,etc.