Question: Many service industries use job order costing to keep track
Many service industries use job order costing to keep track of the cost of serving clients. Can you think of a service industry that provides fairly homogeneous services? Describe the industry and explain why it might use process costing rather than job order costing.
Answer to relevant QuestionsMany companies use a modified costing system that blends certain elements of process costing and job order costing. Can you think of a company that makes products or provides services that have certain similarities (similar ...Some would argue that costs would be more accurate if overhead costs were assigned to jobs using an overhead rate based on actual overhead costs and the actual value of the allocation base, rather than estimated amounts. ...How is a predetermined overhead rate calculated? How does a company decide which allocation base to use to calculate the rate?Carey Company applies manufacturing overhead costs to products as a percentage of direct labor dollars. Estimated and actual values of manufacturing overhead and direct labor costs are summarized here:1. Compute the ...Refer to M2-12 for Fairfield Company.1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold.2. Explain whether the entry in requirement 1 will increase or decrease Cost of ...
Post your question