Question

for pet food: how would adopting a process costing system benefit the managers responsible for the production of this product? list two specific decisions you think a process costing system could help these managers make. identify and describe two or three processes involved in making this product. for each, describe the direct materials used and at least one conversion cost associated with the process. explain how managers would be able to estimate the cost of the units being processed at a given point in time.

Answer 1

Job order costing also gives managers the advantage of being able to keep track of individuals' and teams' performance in terms of cost control, efficiency, and productivity. A disadvantage of job order costing is that employees are required to track all materials and labor used during the job.

With the standardization of products, managers track performance, productivity, and costs over time. Process costing allows for greater flexibility when making changes in the production process. Managers can target specific departments' processes or materials to lower production costs.

With process costing, companies track the flow of costs from department to department, rather than tracking costs for each individual item. Each department adds direct labor and manufacturing overhead costs, plus the cost of any raw materials it uses.

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