Unit 3 DB Acct310 Essay Example | Topics and Well Written Essays - 250 words

social unit 3 DB Acct310 - Essay Examplerder costing system is mainly used in benefit industries including hospitals, movie studios, law firms and even repair shops as well as in cases where individual non-homogeneous goods be produced by an organization.When it comes to this type of system, record keeping and cost problems can be very complex to parcel out especially where different products and services are available, compared to when dealing with single products and services. Since the products available are different, the cost exit relatively be different hence a cost record for each product. Therefore, job ordinate costing needs a lot of effort and concentration as compared to process costing system.process costing involves tracing and accumulation of direct costs, and the allocation of indirect costs of manufacturing processes (Hansen & Mowen, 2006). Process costing is more applicable when the products in question are naturally homogeneous. Costs are in this case delegat e to products which are produced en mass as noted by Hansen and Mowen (2006). This order is mostly suitable for industries such as chemical manufacturing companies since the process flow is continuous. In this system a production report is disposed(p) to summarize the totals and cost of units.In the case of a company that deals with chemicals, cement, electrical parts, textiles and pharmaceuticals products, process costing method is advisable. This is because their production process is continuous and order costing method may not be set aside for this kind of companies.Job order costing is applicable in companies that manufacture many different products for modelling clothing factory and service industries (Hansen & Mowen, 2006). Each product has its own price hence this system is suspend to use and get. Records of each and every order and its cost are stored separately for easy understanding and follow up. Records in a process order costing system are much easier to follow an d little complicated as compared to job order