AssignmentName:
Unit 3 Discussion Board

Deliverable Length:
4-6 paragraphs
Unit 3 Discussion...

Question

AssignmentName:
Unit 3 Discussion Board

Deliverable Length:
4-6 paragraphs
Unit 3 Discussion Board

4-6 paragraphs

Consider the following scenario:
Your CFO, in her initial work, needs to decide whether to set up a job order costing system or a process type costing system. She has asked you to make a recommendation based on the following information. You plan to meet with her in the morning.Write 4–6 paragraphs in response to the following, and provide support for your recommendation:

Compare and contrast job order costing to process costing methods.
What kind of system works best in what kinds of companies?
What kind of system makes sense for your company, given that you plan to start with only one version of your product but at some point in the future may offer a variety of options?
Note: Please list all references

Grading Criteria

Percentage

Compare and contrast job order costing to process costing methods.

20%

What kind of system works best in what kinds of companies?

10%

What kind of system makes sense for your company, given that you plan to start with only one version of your product but at some point in the future may offer a variety of options?

10%

Supporting research/arguments made for recommendation

40%

David · Accepted Answer

1 | P a g e  
 
Job Costing System & Process Costing System: 
 A Job refers to specific contract work order or arrangement, where work is executed as per 
customers requirements. And Ascertainment of cost of each job is called Job Costing.  
Process refers to a distinct stage in manufacturing or production where in raw material is 
converted from one identifiable form into another, before it is finally converted in to the saleable 
final product. 
 The method of Cost accounting whereby costs are charged to processes and averaged over units 
produced is Process Costing  
Similarities and Differences between Job costing & Process Costing 
There are some similarities and Differences between Job Costing and Process Costing
Nature of work 
In Job Costing Specialized   
production based on customer’s 
specification 
In Process Costing there is a 
Standardized Mass production.
Output Quantity 
In Job costing, Each Job is distinct 
from the other output consists of one 
or a few items only. 
In Process Costing, output 
consists of homogeneous units, 
in large quantities.
Cost Assignment 
Each product is distinct so cost is 
Computed for each unit of work.

Grading Criteria	Percentage
Compare and contrast job order costing to process costing methods.	20%
What kind of system works best in what kinds of companies?	10%
What kind of system makes sense for your company, given that you plan to start with only one version of your product but at some point in the future may offer a variety of options?	10%
Supporting research/arguments made for recommendation	40%

AssignmentName: Unit 3 Discussion Board Deliverable Length: 4-6 paragraphs Unit 3 Discussion Board 4-6 paragraphs Consider the following scenario: Your CFO, in her initial work, needs to decide...

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