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3 years ago

LO 5.1Explain how process costing differs from job order costing.

Business

1 answer:

lisabon 2012 [21]3 years ago

6 0

Answer:

one is used to perform single task; while the other for batch processes.

Explanation:

In Job order costing the costs and production or manufacturing specifications are usually not identical for each product or customer which makes the direct material and direct labor costs easily traceable to the final product. Job order costing example is often found in the manufacturing of a car by a company.

However, in Process costing it is used when dealing with batch processes and when a standardized process is required to manufacture identical products and the direct material, direct labor, and manufacturing overhead cannot be easily or economically traced to a specific product.

So the main difference between process costing and job order costing is how the costs are assigned to the products either one is costed to a single task; while the other cost is spread over batch processes.

Process costing examples of batch process includes:

book production
biscuits production
textile production etc

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Reptile [31]

Answer:

D. liabilities.

Explanation:

Payables are payments the business is expecting to make to its suppliers. They represent the goods and services that the company has received but has not paid. Payables are there amounts a business owes to other parties. They are debts are hence should be recorded as liabilities.

Liabilities are the financial obligations a business owe to third parties. They are debts incurred in the normal course of business operations. Liabilities are grouped as either current or long-term. Current liabilities are due within the current financial year, while long-term are payable in future financial periods.

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3 years ago

During the past month, pinnacle corporation purchased a new delivery truck, sold an empty warehouse to another company, met with

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Answer:

met with an existing client to discuss possible extension of a sales contract

Explanation:

The event above would not be recorded in pinnacle's accounting records due to the fact that it was just a conversation and not registered or recorded somehow.

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4 years ago

What would be the purpose of this meeting ? Jessica finds out that the government introduced a new trade policy that will increa

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To discuss the business opportunity given by the government

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4 years ago

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stealth61 [152]

You should put the following words in the blank: Role conflicts. Sorry for the 20 minute wait.

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4 years ago

Problem 19-50 (LO. 8) Julio Inc. is a shareholder of Gray Corporation and is subject to a 21% tax rate. It acquired 2,000 shares

andrew11 [14]

Solution and explanation:

Problem 19-50.

The redemption does not qualify for sale or exchange treatment:

If the redemption distribution does not qualify for sale or exchange treatment, the entire $150,000 will be taxed as a dividend at 15%

$=\$ 150,000 \times 15 \%$ = $22,500

Problem 19-48.

B. Egret corporation will be able to claim a deduction for the amount of bonus (as an expense) which will reduce the company's tax liability. The total amount of tax savings from bonus payment would be $36,435 $(\$ 173,500-(\$ 173,500 * 21 \%))$

So, the net after-tax cost of the bonus for Egret Corporation would be $137,065 $(\$ 173,500-(\$ 173,500 * 21 \%))$

However, Egret corporation is not entitled to claim a deduction for dividends paid and as such there will be no tax savings

So, the net after-tax cost for the dividend would be $173,500.

Egret corporation would be best off by $36,435 if it paid salary to Kristen

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3 years ago