Question

list some of the products that NIKE produce and explain why you think the corporation uses job order or process costing.

Answer 1

list some of the products that NIKE produce

• ?BAGS
• SOCKS
• SPORTS BALLS
• BATS
• APPARELS,EYE WEAR
• GLOVES
• ?PROTECTIVE EQUIPMENTS
• SHOES LIKE RUNNIG,BASKET BALL,SOCCER,CHILDREN e.t.c

?

• ? process costing
•    process costing is employed in continuous production industries
• where the ?ow of production is in a sequence and the output of one process becomes the input of the subsequent one.
• The objective of process costing is to ?nd out the cost of each process by identifying the direct costs with the particular process and apportioning the indirect costs i.e. overheads to each process on some suitable basis.
• The units coming out the process as the ? nished output are uniform in all the respects and hence the cost per unit is computed by dividing the total cost by the total production units.
• unit cost is also measured throgh equivalent units method for un complted units.

?reasons why corporation uses process costing

• cost control
• inventory control
• ?uniformity

??1)under cost control

• each department assigned as a cost center
• A cost center is a number or code that identifies the purchases made by a single department.
• each group creates a report and hiliting purchases,other exepenses met by them
• these reports are compiled and reviewd by senior management/responsible person
• based uponreview if any defficiancy identififed necessary steps to be consider to control cost

2)under inventory control

• identifying inventory can be a cumbersome task for very large corporations.
• This process can be simplified through the implementation of a process costing system
• Throughout the manufacturing process, each department maintains documents for any materials purchased.
• In addition, each good is valued and added to the cost center report.

?3)under uniform basis

• Many organizations allow each of their departments to operate autonomously.i.e independently
• This result ineffective way to operate a business?
• making interdepartmental communication difficult. Furthermore, maintaining separate systems and policies means that additional money and time must be spent to cross-train employees.
• Through the implementation of a process costing system, a company will ensure that every department, ir respective of function, operates in a uniform manner