Job costing system or process costing system
When are companies likely to use a job costing system or process costing system? Describe the specific characteristics of each system and provide at least 2 examples from companies in your community for each system (at least 4 companies should be described).
Sample Solution
Work costing is an exact strategy for following every one of the expenses and income related with a specific undertaking. Tasks may incorporate oddball client endeavors, fabricating new items or conveying numerous items that will be created at a similar time.Job costs are normally separated in the process of childbirth, materials and upward – however every one of these components can be separated further. For example, work expenses may incorporate both representative wages and outsider merchant charges. Material expenses can incorporate both direct unrefined components that show up in a completed item and the aberrant materials used to make the item, similar to hardware. Organizations should cautiously represent and design around every one of these components to convey their activities effectively and on schedule.
