Question

I would like you do identify a publicly traded manufacturing company. BY publicly traded it means they have stock traded on an exchange such as the New York Stock Exchange. I would then like you to research a product they manufacture. Based on what you have found would they use process costing or job order costing. Why did you select the method they did. Please be sure to integrate terms and concepts you learned about in week three and four as you describe the cost accounting system they might use

Answer 1

One of the Company listed on the New York Stock Exchange is FORD MOTORS ( Automobile Industry)

First understand the meaning of the job and process costing

Job costing is used to calculate the cost of the specific product that are specifically manufacture on the behalf of the customers. In job costing the products are different and work is done as per the client instruction.

Process Costing is used to calculate the cost of similar products. The product goes to the different process wherein the output of the one process is the input for the another process department.

Difference Between Job and Process Costing

BASIS FOR COMPARISON	JOB COSTING	PROCESS COSTING
Meaning	Job costing refers to calculating the cost of a special contract, work order where work is performed as per client's or customer's instructions.	A costing method, in which the costs which are charged to various processes and operations is ascertained, is known as Process Costing.
Nature	Customized production	Standardized production
Assignment of cost	Calculating cost of each job.	First of all, cost is determined for the process, thereafter spread over the produced units.

Now we have understood the meaning of the term job and the process costing.Therefore we can conclude that the Company Ford Motors use process costing to determine the cost of the car manufactured.