Question
How can the statement below be rephrased? Taking in all accounts, job order costing assigns costs to a specific unit or product. Process costing assigns
How can the statement below be rephrased?
Taking in all accounts, job order costing assigns costs to a specific unit or product. Process costing assigns costs for a mass quantity of a product or service. Example, manufacturing companies must account for materials, labor, and manufacturing costs that goes into building the product. The accounting of costs depends on the costing system whether it is job costing or process costing. Job order costing entails the production of unique products that differentiates from other products. The job costing system must record the costs for each job. This ranges from law firms, tax services, custom made products like furniture, etc. The system must take into evaluation the unique product, its different material, and labor requirements. The system depending on the product/service can start off with estimated costs before heading for actual costs. Since pricing in country is on the raise there is a chance that all basic ingredients will skyrocket over the next year, creating a chance in most pricing of the product.
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