AFM102 Lecture 5: AFM 102 Week 5 Chapter 5

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM102
• Professor: Jie Joyce Tian

Document Summary

Week 5 chapter 5: systems design: job-order costing. Costing method that includes many manufacturing costs direct materials, direct labour, and both variable and fixed overhead as part of the cost of a finished unit of product. Costing system used in those manufacturing situations where a single, homogeneous product (such as cement or oil) flows in a continuous stream out of the production process. Costing system used in situations where many different products, jobs, or services are produced each period. Example: for example, a levi strauss clothing factory may make many different types of jeans for both men and women during a month. An order might co(cid:374)sist of (cid:1005),(cid:1004)(cid:1004)(cid:1004) sto(cid:374)ewashed (cid:373)e(cid:374)"s (cid:271)lue denim jeans, style number a312, with a 32-inch waist and a 30-inch inseam. This order of 1,000 jeans is called a batch or a job. Used extensively in service industries and not-for-profit organizations.