Current literature

Paper instructions:

The topic for your research is based on current literature and you are to: Compare and contrast at least 2 cost measurement methods and techniques. Discuss what they have in common and how they differ along with the

benefits they provide to management for decision making. Finally, discuss if the items you have selected work for both manufacturing and service industries

Job-order costing is a method where overhead, labor and material are applied to different products, based on how much of each production material is used. Some items may use more labor, while other products may require more

raw materials. Costs are applied, based on the cost of each portion of materials used, rather than through the production process used to manufacture the good. Manufacturers who produce several different types of goods will

use job-order costing
Job costing is the process of tracking the expenses incurred on a job against the revenue produced by that job. Job costing is an important tool for those who are pairing a relatively high dollar volume per customer with a relatively

low number of customers. For example, building contractors, subcontractors, architects and consultants often use job costing, whereas a hardware store or convenience store would not use job costing. Job costing using

accounting software enables you to track a number of factors and analyze the results to aid decision making.
A Job costing report helps you ensure that all costs involved in a job have been properly invoiced to the customer. An Estimates vs. Actual report compares quoted costs to actual costs, and quoted revenues to actual revenues so

that you can analyze any variances between your quote and the actual result. You can then use the results of your analysis to create more accurate quotes when you bid on future jobs. Using job costing will allow you to identify

the most and least profitable areas of your business, so that you can focus on the profitable elements, and try to make the less profitable aspects of your business more efficient. It will help you to quote new jobs more accurately,

and assist you in managing jobs in progress

Process costing applies production costs to products based on the process they go through in the manufacturing process. Each process has a standard amount of overhead, labor and materials that are applied to each batch run

the individual manufacturing processes. Reconciliations are used after batches are processed to ensure that all appropriate costs are applied to the manufactured goods. Uses

oProcess costing is primarily used in the production of homogeneous goods through repeated manufacturing processes. Products that use process costing include beverages, food, nails and screws. These items are processed

through individual processes where costs are applied to each batch of produced goods. Manufacturers must be careful in streamlining their manufacturing process to ensure that each batch has production costs applied in similar

amounts. Job-Order Costing

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