Job order or Process costing system
Management of company that manufactures small appliances is trying to decide whether to install a job order or process costing system. The manufacturing vice president…
Articles by MbaNotesWorld
What methods, document, and approvals are used to control materials inventories?
The more common methods of costing materials issued and inventories are: (1) First-in, first out (FIFO) (2) Average cost (3) Last- in, first out (LIFO)…
Elimination of inventories though a JIT system is believed to result in a number of different types of cost saving. Itemize the types of saving from a
Manufacturing processes are increasingly being based on the receipt of row materials from suppliers” just-in- time “for their used on the plant floor. When firm’s…
Why is control of materials important from a managerial-planning perspective?
Materials managers are constantly confronted with the following problems and requirement: Inventories account for a large portion of the working capital requirements of many businesses….
What is the difference between accounting for costs under a JIT system and under a traditional process costing system?
Process costing. A cost of production report is used to collect summarized and compute total and unit cost. Production is accumulated and reported by department….
THE NATURE OF COST ACCOUNTING
In the planning phase cost accounting deals with the future. It helps management the budget the future of predetermined materials cost wages and salaries and…
What operating conditions are necessary for a company to make use of a JIT system?
A successful just-in-time system requires a change in manufacturing processes to accommodate this new inventory philosophy. What is involved is process management, not merely inventory…
SCOPE OF ACCOUNTING
Non manufacturing activities of manufacturing firms wholesale and retails business banks and other financial enterprises insurance companies transpiration companies railroad airlines shipping companies bus companies…
THE COST DEPARTMENT
The cost department must not only record but also analyze all cost of manufacturing marketing administration for use by management in planning and control. It…
SOURCE OF COST ACCOUNTING DATA
In addition to invoices and documents supporting transaction of materials purchased consumed or transferred between department the account requires reports of time studies record of…