Under what conditions would it be appropriate to use a process Essays

Under what conditions would it be appropriate to use a process costing system? Process costing system can be used in industries that produce essentially homogenous products on a continuous basis, such as bricks and paper. 2. In what ways are job-order and process costing similar? Job-order and process costing are similar in three ways that the book declares. One, both systems have the same basic purposes- to assign materials, labor, and overhead to products and to provide a mechanism for computing unit product costs. Second, both systems use the same basic manufacturing accounts, including Manufacturing Overhead, Raw Materials, Work In Process, and Finished Goods. Third, the flow of costs through the manufacturing accounts is basically the same in both systems. 3. Costing are accumulated by job-order costing system; how are cost accumulated in a process costing system? Under process costing, costs are accumulated by department, rather than by order, and assign these costs uniformly to all units that pass through the department during a period. 4. What two essential features characterize any processing department in a process costing system? The first feature is the activity performed in the processing department must be performed uniformly on all units passing through it. The second feature is the output of the processing department must be homogeneous. 5. Why is cost accumulation easier in a process costing department in a job-order ...