This chapter discusses the most common cost accumulation systems used to account for the cost of production, which are the job order costing and the process costing systems
2015
Key concepts
Scholarcy highlights
- This chapter discusses the most common cost accumulation systems used to account for the cost of production, which are the job order costing and the process costing systems
- Under a job order cost system, direct materials, direct labor and factory overhead, which are the basic components of cost, are accumulated according to assigned job numbers
- The unit cost for each job is obtained by dividing the total units for the job into the job's total cost
- A process cost system determines how manufacturing costs incurred during each period will be allocated
- All costs chargeable to a department or cost center are presented there
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