Job-ordered Costing System vs. a Processing Costing System for the EEC
1157 Words5 Pages
In this paper I will examine if EEC should use a job-order costing system or process costing system. I will discuss how the frameworks are diverse and depict how the chosen framework might work to track expense of the 1.5 gigabyte machine memory chip. I will distinguish the cost driver, and clarify the methodology of following the expenses. I will likewise give examples of job-order costing and process costing system.
EEC should use a job order costing system. First off, I will start by describing what is job-order costing and process costing. Job order costing or job costing is a framework for appointing assembling expenses to a singular item or clusters of items. By and large, the job order costing framework is utilized just when the items produced are sufficiently not the same as one another. The point when items are indistinguishable or almost indistinguishable, the process costing framework will probably be utilized. Since there is a critical variety in the items fabricated, the job order costing framework will make work expense record for everything, occupation or unique request. The occupation expense record will report the immediate materials and immediate work really utilized in addition to the assembling overhead appointed to each one employment Process costing is a term utilized within cost accounting to portray one technique for gathering and doling out assembling expenses to the units generated. Preparing expense is utilized when almost indistinguishable