Team C Brian Dent, Rashida Johnson, Marvin Jenkins, Zachery Wheaton Acc/400 12/11/16 Job Costing Instructor Portugal Job Order Costing INTRODUCTION The process of Job order costing is usually always discussed in cost accounting and managerial accounting roles and jobs. People and employees sometimes have a hard time understanding job order costing that is only because most people do not have the perception of manufacturing processes. When it comes to this process the best way to understand is to actually be involved this lack of understanding, it would help for students to be open and more knowledgeable to to an real hands on manufacturing operation. DISCUSSION The exercise described in this paper allows the student to experience a manufacturing operation in the classroom. The exercise involves the manufacture of a custom-made table out of balsa wood and other materials. The whole process started with the buying of raw materials and ended off with the sale of the finished product. The whole simulation we viewed is different in their own separate ways. The focus was solely and comprehensively on job order costing whereas in the previous articles have only covered job order costing. Another focus was) by using the variety of materials called for in this simulation, the product and manufacturing process is more real, this gives the students or employees the ability to clearly see the differences between materials direct and indirect. This includes Direct labor and indirect labor, and other items that constitute manufacturing overhead. Our team feels that this is an extremely important differentiation not only in the process of understanding cost accounting, but in understanding activity-based costing, since the difference between the two theories lies with overhead. CONCLUSION The whole allocating process is one that many companies use and will continue to use. Making the use for custom and special products will always be in demand. When a company specializes in a specific type product or item job costing is a direct result of that. All of the jobs require different amounts of material, labor, and overhead. This is why each job has a unique total in its own sense. Knowing the difference between when it comes to job cost and overhead allocating is important and is something we all agreed that should be learned. Standard Cost and Variance Analysis ACC/400 Version 2 Team C Brian Dent, Rashida Johnson, Marvin Jenkins, Zachery Wheaton Acc/400 1/09/17 Standard Cost and Variance Analysis Instructor Portugal Copyright © 2014 by University of Phoenix. All rights reserved. 1 Standard Cost and Variance Analysis ACC/400 Version 2 University of Phoenix Material Standard Cost and Variance Analysis Complete this matrix by providing at least 2 reasons why you agree and 2 reasons why you disagree with each of the following author’s statements (shown on page 17 of the article). Support your arguments with at least 125 words for each agreement/disagreement. Author’s Comment I agree because… I agree because… “In the future, I envision more companies moving toward actual cost systems. Standard cost variance analysis will no longer be required because inventory transactions will be recorded at actual cost.” I agree because ,a cost system is a accounting system is the framework used by many different types of firms to estimate the cost if their products for profitability analysis, inventory valuation ans cost control Estimating the accurate cost of products is critical for profitable operations. This would make the whole process of tracking all the different types of invertory and its over all cost. This would make the operations of the entire business run better and make everyones job allot easier to fully understand the over all big picture. It would make the employees focus the acutual real cost then what they could predict costs. It would also be important to look ahead and make sure plans are thought up for the future plans for the company to understand the costs that could arise as time and production continues. I agree because not only would the cost systems help out the company over all but it would also help the employees of the company on the day to day operations and will be able to reduce the amount of stress they might all feel everyday while working. It would also help the employees understand what areas need to have improvement, they would be able to focus more time to focus on the different types of budgets, making sure the correct steps are being formed to create the best budget for the company. It would also help bring more value to the inventory and create a better profit, I belive this would help employees feel more motivated and will bring a lot more benefits to the workplace. “This change will free up significant resources in the finance department and will allow cost analysts to function more as business partners within the organization.” I agree because this would aloud the finicial deparemnet to have a lot more flexable bookkeeping, as long as all the cost are planned out and covered, they would be able to spend more time to take care of any current decision or issue. I feel they will be able to spend more time and plan for the end goal that has been set and not be so worried if everday numbers don’t add up or are off. All the information would be set that the correct inventory has been met and items I agree because a lot of the work will already be planned out and the amount of paperwork that each employee would have to do would be reduced. If the correct decision are made from the top of the company and everything is going correctly the amount of documentation wouldn’t have to be created. Everything is figured out for example if I am making a product I had to buy this many materials at a cost of $5,00 a yard. The Amount of labor for each would be $30.00 per product, if everything from start to finished is fiured out the need to have Copyright © 2014 by University of Phoenix. All rights reserved. 2 Standard Cost and Variance Analysis ACC/400 Version 2 have been purchased as need for the company. Everything need to be to gain a good profit and keep the company running. All the steps should be in place that the accouting teams should be worries every step of the way. extra departments isn’t needed. “The accounting focus will shift from variance analysis to understanding the underlying cost structure of a product or process, highlighting significant cost trends, identifying cost reduction opportunities and educating operations personnel on the financial impact of their day-to-day decisions.” “The analyst’s role will become proactive instead of reactive.” Author’s Comment I disagree because… Copyright © 2014 by University of Phoenix. All rights reserved. I disagree because… 3 Standard Cost and Variance Analysis ACC/400 Version 2 “In the future, I envision more companies moving toward actual cost systems. Standard cost variance analysis will no longer be required because inventory transactions will be recorded at actual cost.” “This change will free up significant resources in the finance department and will allow cost analysts to function more as business partners within the organization.” “The accounting focus will shift from variance analysis to understanding the underlying cost structure of a product or process, highlighting significant cost trends, identifying cost reduction opportunities and educating operations personnel on the financial impact of their day-to-day decisions.” Copyright © 2014 by University of Phoenix. All rights reserved. 4 Standard Cost and Variance Analysis ACC/400 Version 2 “The analyst’s role will become proactive instead of reactive.” Copyright © 2014 by University of Phoenix. All rights reserved. 5
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