Assignment
of
Accounting and Finance
for Decision Making
“Debate between Job Order Costing and Process Costing”
By Sharon Fong
Table of Content
PART 1 INTRODUCTION 1
PART 2 COSTING SYSTEM 2
1. Job Order Costing (JOC) 2
2. Process Costing (PC) 3
PART 3 ACCOUNTING METHODOLOGIES 4
1. Last-In-First-Out (LIFO) 4
2. First-In-First-Out (FIFO) 5
3. Comparison between LIFO and FIFO 6
PART 4 CASES STUDY 7
Case 1 – Law Firm 7
Case 2 – Furniture Manufacturing Industry 7
Case 3 – Bakery 8
PART 5 CONCLUSION 9
PART 1 INTRODUCTION
This report to distinguish between and identify companies that may use the “Job Order Costing” and “Process Costing” which are the major types of costing systems that used in manufacturing and service company. Both of the costing methods are widely used to track costs and will be selected upon the level of details needed and the desires of management. Details will be described in Part 2.
Other than the costing systems, we should have good inventory control system as well. Inventory may consist of finished goods, work-in-process, raw materials, goods for resale and spare parts that held by the company. It is important to have a control system ...