Choose one of the job costing questions below. Exlain your response in a paragraph or two.
1. What are the major differences between managerial and financial accounting?
2. Identify the three elements of cost incurred in manufacturing a product and indicate the distinguishing characteristics of each.
3. Why might a company claim that the total cost of employing a person is $15.30 per hour when the employee's wage rate is $10.50 per hour? How should this difference be classified and why?
4. Why are certain costs referred to as period costs? What are the major types of period costs incurred by a manufacturer?
5. Explain why the income statement of a manufacturing company differs from the income statement of a merchandising company.
6. What is the general content of a statement of cost of goods manufactured? What is its relationship to the income statement?
7. What is the relationship between cost flows in the accounts and the flow of physical products through a factory?
8. Define a job cost system and give an example of a situation in which it can be used.
9. Assume Domino's Pizza is considering offering a new product--a 6-inch (15.24 cm) pizza. Why would it matter if Domino's Pizza knows how much it costs to produce and deliver this 6-inch (15.24 cm) pizza?
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Job Costing Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0
1. What are the major differences between managerial and financial accounting?
2. Identify the three elements of cost incurred in manufacturing a product and indicate the distinguishing characteristics of each.
3. Why might a company claim that the total cost of employing a person is $15.30 per hour when the employee's wage rate is $10.50 per hour? How should this difference be classified and why?
4. Why are certain costs referred to as period costs? What are the major types of period costs incurred by a manufacturer?
5. Explain why the income statement of a manufacturing company differs from the income statement of a merchandising company.
6. What is the general content of a statement of cost of goods manufactured? What is its relationship to the income statement?
7. What is the relationship between cost flows in the accounts and the flow of physical products through a factory?
8. Define a job cost system and give an example of a situation in which it can be used.
9. Assume Domino's Pizza is considering offering a new product--a 6-inch (15.24 cm) pizza. Why would it matter if Domino's Pizza knows how much it costs to produce and deliver this 6-inch (15.24 cm) pizza?
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Job Costing Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0