ACC-1B Lecture Notes - Lecture 10: Cost Driver, Charmin
Document Summary
Organization of the chapter: job order vs. Process costing: assign manufacturing costs to jobs, record the flow of costs in job order costing, overapplied or underapplied manufacturing overhead. *this type of costing applies to companies that offer customized or unique products . An audit performed by an outside accounting firm. Operations costing- a hybrid cost system which is a blend of process costing (for the common processes) and job order costing (for the unique components) i. e. Direct materials- the major material inputs that can be directly and conveniently traced to each job. Direct labor- the hands-on work that goes into producing a product, the cost of which can be directly and conveniently traced to the product. Manufacturing overhead- includes all manufacturing costs other than direct material and direct labor. It includes all of the indirect costs involved in making a product that cannot be directly or conveniently traced to a specific job.
