Concept explainers
Cost Accounting Systems
Cost accounting systems are used to measure, record and report product costs. Managers are used products costs for setting product costs, controlling setups and developing financial statements. They are two types of Cost accounting systems they are:
Job order costs , and- Process costs
Job order costs
It is a method of cost accounting, in which cost is collected and accumulated for each job, work order, or project separately. Especially the job order costing is followed in organizations where customized goods are produced.
Process costs
It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.
To Identify: The following industry comes under Job- order costing or
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FINANCIAL AND MANAGERIAL ACCOUNTING
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