Question: Job order costing is used when a customer orders a specific or customized product. Companies that produce smaller, specific batches. The jobs are unique and
Job order costing is used when a customer orders a specific or customized product. Companies that produce smaller, specific batches. The jobs are unique and materials and labor can be easily traced (Lister, 2019). Manufacturing companies can control most raw materials, production lines, and labor cost, and each cost is its own separate job for job costing. An example of a company that uses job order cost systems is Louis Vuitton is a high-end purse manufacturing company that seasonally will bring out special or limited addition purses and accessories. Process-costing systems is used in repetitive productions environments Process-costing systems is used in repetitive production environments, where large number of identical or very similar products are manufactured in continues flow (Hilton&Platt,2017). An example of a company that uses process-costing is Budweiser. The plant in Woodland Hills CA. has mass productions lines and bottles their product on site. There are very little changes in the process. In addition, other beer lines are manufactured using this plant. Thoughts on article?
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