Name one or more manufacturing companies that utilize job costing. Post a brief summary.

Solutions

Expert Solution

Manufacturing companies that use Job Costing are as follows.

1. Boeing (Airplanes)

Boeing is a world famous manufacturer of aircrafts and aircraft equipments. Since the intricacies involved are different in the manufacture of one aircraft from the other, each aircraft, project or part thereof is treated as a seperate job, with different and seperate allocations for Materials, labour and overheads and other expenses.

2. Ferrari (Luxury Vehicles)

Although the automobile industry does not use job costing, luxury car manufacturers, due to the amount of customisations and uniqueness that they can bestow upon the vehicles, each vehicle requires a different amount of labour, different materials, even different kinds of paint mixed in different ways.

So according to each customer's requirements, a job sheet is prepared, and unlike normal cars that come with a retail price + options, luxury cars are priced based on the job sheet prepared.

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

True or false 1) companies that utilize an activity—based costing system are encouraged to utilize this...

True or false 1) companies that utilize an activity—based costing system are encouraged to utilize this costing system when preparing external financial statements so end users of the financial statements can see a more accurate reflection of how the company is performing. 2) in multi division companies with large payroll expense but small material expenses (such as legal firms), the best base to allocate common fixed expenses to the division is A) not applicable B) headcount (number of employees) C)...

discuss the brief feature of job costing system

PROBLEM ONE The Kitty Manufacturing Company uses a standard absorption costing job costing system. Manufacturing overhead...

PROBLEM ONE The Kitty Manufacturing Company uses a standard absorption costing job costing system. Manufacturing overhead is allocated to products on the basis of standard direct labor hours. At the beginning of 20xx, Kitty adopted the following standards for its manufacturing costs: Direct materials 3 lb. @ $5 per lb. Direct labor 5 hr @ $10 per hour Overhead: Variable $5 per direct labor hour Fixed $10 per direct labor hour The denominator level for total...

1.Job costing in service firms uses recording procedures and accounts similar to those for manufacturing companies...

1.Job costing in service firms uses recording procedures and accounts similar to those for manufacturing companies except for those regarding: Direct labor. Overhead costs. Direct materials. Cost drivers. 2.The following are types of rework except: Rework on normal defective units common to all jobs. Rework on abnormal defective units not falling within the normal range. Rework on normal defective units for a particular job. All of these answer choices are types of...

Are standard costing systems just for manufacturing companies?

When are companies likely to use a job costing system? When are companies likely to use...

When are companies likely to use a job costing system? When are companies likely to use a process costing system? Describe the specific characteristics of each system and provide 2 examples from companies that use each system (at least 4 companies should be described).

absorption and/or variable costing. In the subject line of your post, include the name of the...

absorption and/or variable costing. In the subject line of your post, include the name of the article that you read. Post a link to that article with your initial post, and provide a summary and a reaction to the article. The summary should be approximately 250 words, and the reaction should be approximately 150 words. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply...

When are companies likely to use a job costing system or process costing system? Describe the...

When are companies likely to use a job costing system or process costing system? Describe the specific characteristics of each system and provide at least 2 examples from companies in your community for each system (at least 4 companies should be described).

Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. The unique...

Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. The unique feature for process costing system is the concept of equivalent units. Read chapter 16 and answer below questions: 1) What is meant by equivalent units of production, and why are they important when a process cost accounting system is used? 2) Briefly explain the conditions under which job order cost accounting systems and process cost accounting systems are commonly applied. 3) What's the difference...

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...

Subjects