Learning Engagement, Week 2:
PROFESSOR’S GUIDANCE FOR THIS WEEK’S LE:
This week we studied two main costing methods: job-order costing and process costing. Companies can use either method depending on what they are manufacturing for sale. You might also have companies that utilize both where they manufacture both custom/unique items and standard products. For example, Nike makes sports/active wear for the average consumer as well as special-order/unique items for specific colleges/professional teams.
It is important to understand the differences of these cost systems as they are geared towards what the company is making. For example, Lays, Inc. uses mainly a process costing system in the making of potato chips. Batches are created for different flavors or types of chips manufactured. While each batch may be different flavors, the process overall is homogenous in contrast to job-order costing. Job-order costing is focused more on unique or one of a kind product. Swimming pool construction is a job-order costing process. Even though the basic process of digging a hole, lining it with rebar, plastering, and finishing is approximately the same, there are unique features to consider. Size, shape, color of plaster, color of decorative tile/stone create that uniqueness which must be tracked for each job.
1. Please make sure that you read the relevant chapter from the textbook
2. Watch the YouTube videos for this week and additional course material provide
3. Ensure that you can communicate your point of view clearly and without ambiguity. Provide one example to strengthen your point of view in the main discussion.
General Discussion Notes: Applicable each week:
NOTE: Total maximum score = 30 points
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