You learned about job order costing and activity-based costing. Each method deals with manufacturing overhead in a different way. There are various implications with how costing is done. The following items will help stretch your thinking a bit.

1. Why should an employee have some understanding of costing if they are not in the accounting department?
2. Explain how the method of costing used will impact the company with: (A) the quoting of customer jobs and (B) gross margin/profit on the Income statement.