The difficulty with the material in Chapter 8 is that joint eeonomic eosts are fairly obvious when we know the eeonomic cost curve; yet life goes forward with accounting estimates and we must be careful not to infer too much structure from the way the accounting library is organized. This is why the terms "unit costs," "joint accounting eost," and "cost aIlocation" were put forward. They serve to remind us the gap (pun) between the aceounting library and eeonomic eost may be large.

Return to the setting of job order costing, where we have direct labor, direct material, and one or more overhead accounts. Where did you use unit eosts and eost allocation? Be specific, and contrast aetual, normal, and standard costing procedures.

AppendixLO1