Question F Keep brief and bullets are preferred (10 marks)

Part 1 In a job order cost system, briefly state two important Labour / HR policies that would help the company produce customized products as desired by customers and would help the company control costs in setting prices for these products. This is particularly important for fixed price contracts. (4 marks, 2 marks per policy stated) 1.

Part 2 In a process costing system, 1. Why are equivalent units used to calculate costs to be assigned to units transferred out and ending work in process inventory and 2. Why are factory overhead costs allocated to products? (4 marks, 2 marks per point) 1.

Part 3 In process costing, products are mass-produced. What is an important HR policy that would control time and money in this system? (2 marks)