Question

In: Accounting

Describe the type of costing system that is used in your organization (e.g., Job Order Costing,...

Describe the type of costing system that is used in your organization (e.g., Job Order Costing, Process Costing, etc.). Why do you think this system was chosen for implementation, and do you think it is the correct choice?

Solutions

Expert Solution

Our selected company is Nike, Inc., so the best costing system suitable for the company would be "Process costing". This is because Nike has been producing consumer goods and these goods are produced in several processes. Each process has it own costs and cost appropriation to each batch or unit and reaching out to the total cost to a product unit is possible.

The job costing is not appropriate because the products are not produced in a shot or in a department. Under job costing system, all the cost are collected at one department and apportioned among the products, which is not possible for the consumer products of the company.

The Activity- Based Costing, the costing of the company is minutely classified and appropriated to the products on the bases of the Activities used to produce a product. But this costing system is not appropriate for Nike because classifing each process costs under the ABC costing system is not possible, so appropriation is not possible.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

1-Describe job order costing, process costing and activity-based costing. Provide examples of the type of companies...
1-Describe job order costing, process costing and activity-based costing. Provide examples of the type of companies that would use these costing methods (i.e., three company examples, one for each type of method). 2-Discuss the differences between relevant costs, opportunity costs and sunk costs. Provide examples with respect to how these costs pertain to incremental analysis. 3-Define a static budget and a flexible budget. Which is more useful for companies and why? How could you use variance analysis in your personal...
1-Describe job order costing, process costing and activity-based costing. Provide examples of the type of companies...
1-Describe job order costing, process costing and activity-based costing. Provide examples of the type of companies that would use these costing methods (i.e., three company examples, one for each type of method). 2-Discuss the differences between relevant costs, opportunity costs and sunk costs. Provide examples with respect to how these costs pertain to incremental analysis. 3-Define a static budget and a flexible budget. Which is more useful for companies and why? How could you use variance analysis in your personal...
an organization uses a job-order costing system. The company uses direct labor hour as the allocation...
an organization uses a job-order costing system. The company uses direct labor hour as the allocation base for applying manufacturing overhead cost to individual jobs. At the beginning of the year, the company’s estimated manufacturing overhead cost is $1,000,000 and the estimated number of labor hours is 200,000. At the end of the year, the company found that the actual manufacturing overhead cost is $1,200,000 and the actual number of labor hours is 250,000. 1. What is the predetermined overhead...
Job Order Costing: Define job order costing. Compare and contrast job order costing with process costing....
Job Order Costing: Define job order costing. Compare and contrast job order costing with process costing. Trace the flow of costs through a job order costing system. Discuss manufacturing overhead and how it is applied. Why is the manufacturing overhead account adjusted at the end of the period?
Job Order Costing: Wadadli Products uses a job-order costing system Overhead costs are applied to jobs...
Job Order Costing: Wadadli Products uses a job-order costing system Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 170,000 machine-hours would be required for the periods estimated level of production. The company also estimated $212,500 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $1.50 per machine hour. Required: 1. Compute the company’s predetermined overhead rate. 2. Assume that during the year of...
Describe the flow of different cost items in your job order costing sheet.
Describe the flow of different cost items in your job order costing sheet.
Question #1: Compare and contrast a job order costing system and a process costing system -...
Question #1: Compare and contrast a job order costing system and a process costing system - include an example of when each might be used Question #2: Explain in detail what the term "equivalent units" means. How is it used in Accounting and/or what is its purpose
Discuss several aspects that differentiate the process costing system from job order costing system.
Discuss several aspects that differentiate the process costing system from job order costing system.
In your own words describe in detail what Job Order Costing is, how it is different...
In your own words describe in detail what Job Order Costing is, how it is different to Process Costing, and how we apply overhead costs in the Job Order Costing environment.
Job-order costing:
Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed: Number of units in the job 40 Total direct labor-hours 80 Direct materials $ 950 Direct labor...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT