GEO 509 Chapter Notes - Chapter 5: General Ledger, The Need, Barcode

• School: Ryerson University
• Department: Geography
• Course: GEO 509
• Professor: Hersch Jacobs

Document Summary

Chapter 5: systems design job-order costing: costing methods can have an important impact on reported profits and on key management decisions such as pricing and outsourcing. In chapter 8, will see variable costing as another form of product costing. Process costing: process costing system: used in (mainly manufacturing) situations where a single homogeneous product (ex. cement) flows in a continuous stream out of the production process. Involves accumulating costs in a particular operation or department for an entire period, and then dividing the total cost by the number of unties produced during that period: unit product cost= t(cid:2925)(cid:2930)(cid:2911)(cid:2922) (cid:2923)(cid:2911)(cid:2924)(cid:2931)(cid:2916)(cid:2911)(cid:2913)(cid:2930)(cid:2931)(cid:2928)(cid:2919)(cid:2924)(cid:2917) (cid:2913)(cid:2925)(cid:2929)(cid:2930) T(cid:2925)(cid:2930)(cid:2911)(cid:2922) (cid:2931)(cid:2924)(cid:2919)(cid:2930)(cid:2929) (cid:2926)(cid:2928)(cid:2925)(cid:2914)(cid:2931)(cid:2913)(cid:2915)(cid:2914: each unit is undistinguishable from the others, so each is assigned the same average cost. Job-order costing an overview: recall from chapter 2 that companies generally classify manufacturing costs into three broad categories: (1) direct materials, (2) direct labour, and (3) manufacturing overhead.