Skip to main content

What is Job order costing and process costing, its uses and example?


Job order costing=

Job order costing is that system which is used to prepare different types of products and which is used for different types of jobs, job order costing helps to define cost per unit for each job. Each unit cost contains direct costs and overhead cost related to the job.

Uses=
  • It is used to produce order based products instead of mass products.
  • It is used for the production of large volume, unique and high cost items.
  • All the costs related to job order costing can be measured relevant to each job.

Example=
Job order costing is applicable in many businesses some examples are following:
In printing business, building construction, it is also applicable in hospitals, Schools, Universities and law firms.

Process costing=

Processing cost is that cost which is implemented to all the units produced in the manufacturing process.it helps to define cost per unit processed which includes direct and indirect manufacturing costs. In Process costing mostly identical products are produced i.e. mass production.

Uses=
  • Process costing is widely used to produce same or identical items.
  • In process costing Mass production is used.
  • In this each unit costs cannot be measured as they are identical with direct and indirect costs.

Example=
Process costing is applicable in many companies:
Many companies like paper mills, paint manufacturing companies uses process costing.
Labels:

Comments

Post a Comment

Popular posts from this blog

Difference between Downsizing and Reengineering with real life example

Explain difference between Downsizing and Re-engineering with real life example? Downsizing = Downsizing is used to reduce the size in order to improve its financial performance, usually by laying off employees.Businesses use several techniques in downsizing, including providing incentives to take early retirement and transfer to subsidiary companies, but the most common technique is to simply terminate the employment of a certain number of people. Downsizing often takes place as part of a larger restructuring program at a company. Although it's usually thought of as a strategy companies use to become smaller, downsizing can also be the result of company mergers, acquisitions, and takeovers.Its most common form comes in employee layoffs, which reduce payroll costs for the company. Downsizing may also involve shuttering some operations or offering certain employees early retirement. Downsizing is typically seen during economic downturns in order to improve efficiency and
5 comments
Read more

Difference between strong and week culture

Difference between strong and week culture? Culture it is the knowledge of a particular group of people, defined by everything from language, religion etc Cultural strength may be measured across a sub-culture or across the country. Strong culture In strong culture, employees and management understand what is required of them and they will try to act in accordance with the core values. Weak culture In weak culture there is greater need for procedures, policies and bureaucracy in order to get things done in the desired way Difference: Strong culture Week Culture 1-Individual behaviors consistently reflect group values 1-provides poor services which needs to be improved through policies 2-it Produces clarity. 2-Individual behaviors reflect a diversity of beliefs and values 3-less need for detailed policies and procedures. 3-Produce inconsistency in practice. s
Post a Comment
Read more

How to Manage time to increase your focus.

The Most Successful person in the world is the one who value every second of their life That is why it is called Time is money. If you study history of the successful and rich people they all have one common and important habit which is time management. In time management you have to save time and utilize it in the right way in order to achieve your goals and this is the only thing which satisfy you and gives you the best return in the future. The Following tips will help you save and manage your time in order to increase your focus for achieving your most desired goals. Create a to do List. List all those tasks which you have to do and do it accordingly. Use Sticky Notes. Use sticky notes for important tasks which are urgent. Prioritize your tasks. Choose the most important tasks and set the priority tasks on the top of your list. Wake up Early in the morning. Waking up early have a big advantage as you can work in full peaceful environment with fresh mind.
2 comments
Read more