ACC 406 Chapter Notes - Chapter 5: Round-Off Error, The Sequence, Finished Good

• School: Ryerson University
• Department: Accounting
• Course: ACC 406
• Professor: ellis greece

Document Summary

Importance of unit costs to firms: for manufacturing firms, unit costs are essential for. Making important decisions: for service firms, unit costs are used to determine. Process costing: job-order costing - example industries: Printing, construction, furniture making, medical services, dental services, automobile repair, beautician services: process costing - example industries: The key feature is that the cost of one unit of a product is identical to the cost of another: job-order costing: Firms operating in job-order industries provide a wide variety of services or produce products that are quite distinct from one another. Customized or built-to-order products fit into this category, as do services that vary from customer to customer. A job is one distinct unit or set of units. Production costs in job-order costing: direct materials and direct labour are fairly easy to trace to individual jobs, overhead. Overhead is not so easy to trace to individual jobs.