Description
1.What are the main differences between job, process, and activity-based costing?
2. How is manufacturing overhead calculated in each of the costing methods?
3. How are variances identified?
4 .According to Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2016), A cost accounting system consists of accounts for the various manufacturing costs. Compare and contrast Job Order and Process Order cost systems and the flow of cost for each of these systems.
You are welcome to respond to the question and share your thoughts, or reply to your classmate's post as it relates to this topic.
5. How might each of the costing methods be used in managerial decision-making?
6. Watch the "Author's Corner: Costing Errors" video.
Consider the following as you watch:
- Why is it important that a manager understands how product cost is determined?
7. Watch the "Author's Corner: Alternative Costing Methods" video.
Consider the following as you watch:
- What are the alternative costing methods?
8. Describe the scenario in which each costing method can best be used from "Author's Corner: Alternative Costing Methods" video.
Explanation & Answer
Kindly see attached file with the answer to the different discussion questions
1.What are the main differences between job, process, and activity-based costing?
The main differences between job-based costing, process-based costing and activity-based costing are
related to which part of the production process is being computed in the calculation of the costs. In this
regard, the job-based costing method estimates the costs of each job or batch of goods on an individual
basis. In contrast, the process-based costing and the activity-based costing methods, estimate the
costs of the processes or activities over a period of time (e.g. weekly) or at the end of the accounting
period.
An additional difference relates to the characteristics of the jobs, processes and activities. In this case,
the job refers to a specific item designed on a unique basis to match the requested characteristics of
the customer. The process, in contrast, refers to a group of items that is being produced on a
continuous basis. The activity, finally, refers to the type of products or services provided by the
company.
Finally, it should be noted that even while job-based costing generally provides a higher accuracy in the
estimation of the production costs of a specific item, it is generally more complex, as many more data
need to be taken into account by considering the exact cost of each of the materials used in the
production of the object, and how many materials were used. In contrast, the process-based costing
provides an average cost, h...
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