Respond to the required questions, double-spaced, APA format (source citations and reference insertions) essay (Each Question). In each Case Study, you must use at least three (3) references (in text), including the textbook (included below).
Textbook reference:
Managerial Accounting: Decision Making and Motivating Performance- Text Only: Datar, S.
M., & Rajan, M. V. (2014). Managerial accounting: making decisions and motivating performance.
Boston: Pearson. ISBN: 9780137024872
(This Assignment Box maybe linked to Turnitin.)
Respond to the required questions, double-spaced, APA format (source citations and reference insertions) essay (Each Question). In each Case Study, you must use at least three (3) references (in text), including the textbook (included below). Textbook reference: Managerial Accounting: Decision Making and Motivating Performance- Text Only: Datar, S. M., & Rajan, M. V. (2014). Managerial accounting: making decisions and motivating performance. Boston: Pearson. ISBN: 9780137024872 (This Assignment Box maybe linked to Turnitin.) 125 Words (Christopher Myers) – Reply and Comment on the following: Many companies do decide to utilize both job and process costing. It really is determined by what is best for that particular company. To fully comprehend the basic differences in methods is related to what is needed to produce the product or service that the customer requests. The type of different type costs that you have will help the company decide to use both accounting methods or just job or process costing by itself. Job costing looks into the entire body of the process of creating the product or service. Let’s take a plumber for example; each job is unique and requires different costs for the type of labor, tools, and plumbing products for each project. For jobs that require different costs that pertain to that product or service provided job costing is a better accounting method to use. Process costing is when a company produces a very similar product every time. If a company produces toothpicks they won’t have many variations to this type of product. They could make different batches of similar product such as mint flavored tooth picks and normal toothpicks. They could even make different flavors such as bacon. But all these costs related to products that they offer are relatively the same for that particular product. Every mint flavored toothpick should have very similar costs related to the material purchased, machine use and flavor related costs. It makes sense that companies would need both types of accounting methods. This is because companies are complex and so are the products or services that they produce or offer. Car companies for example sell base models. These base models could utilize process costing because they will all have similar production costs. Now this same company may offer a super charged engine, leather seats, headed seats, automated driving, or other upgrades. These upgrades would need the job costing method because the product has a difference in the cost that it requires to make the product. A car with heated seats, and a super charged engine will have different costs related to producing the end product versus what the base model cost to produce. 125 Words (Samantha Argus-Bolyard) – Reply and Comment on the following: Job costing and process costing differ in the way they breakdown the expenses of the job. Job costing ties all the expense for a project to a specific project (Datar & Rajan, 2014). Where as the process costing takes the full amount of expenses and ties it to multiple goods or services (Datar & Rajan, 2014). Accounting tools (2019) give a list of 4 differences in the processes; uniqueness of product, record keeping, size of job, and customer billing. Overall job costing is used for smaller, unique projects that are billed directly to the customer (Accounting Tools, 2019). It makes sense since these projects are typically customized. Process costing is used for more standardized, larger projects that customers are have a flat fee (Accounting Tools, 2019). It makes sense that many businesses use a combination of these methods. An example that comes to mind is going to the salon. There are certain prices for services such as cut or a color that fall into the process costing scenario. But customer can ask for a more complex color, multiple colors, or a specialty haircut and the costing method changes to job costing. They have to use both kinds of costing methods to be able to supply customer with their specific needs. The same runs true with all businesses, the difference in costing systems allows business to cater their customers needs.