Job and Process Costing Systems

Joband Process Costing Systems

Nameof Student

Nameof Institution

Joband Process Costing Systems

Acostingsystemsis crucialin an organizationsinceitdeterminesresourceallocation,as wellas assigningroles and materialsto variousprojectsthattheorganizationmay wishto carryout. Asstatedin thepost,itis truethattheperformanceof an organizationimprovessignificantly whentheorganizationintroducesa costsystem.In addition,theargumentthatproductivitywithin theorganizationis enhancedcan besupportedby thefactthatdecisionsare madefasterwhena costingsystemis usedin an organization.Itis essentialthateachdepartmentwithin theorganizationisassignedsomecoststhisensurespropercoordination within thevarioussectionsof thebusiness.Through thesystemof allocating resourcesto eachdepartment,itis possibleto tracktheprogressthateachdepartmentmakesandascertainwhetheralldepartmentsare achievingthesetgoals(Krumwiede &amp Walden, 2013).

Thestudenthas givena comprehensivediscussionof wheretheuseof thecostingsystemshould apply.From thediscussion,itis evidentthatthesystemof jobcostingappliesto diverseorganizations.Whethera companyproducesin smallscaleorlargescale,thecostingsystemis applicableto allformsof organizations.Assuch,itcan be arguedthateventhesmallbusinessesshould not ignorejobcosting,butshould ratherembraceitin their operations.Thewriterhas providedthereaderwith a clearviewof thebusinessesthat benefitfrom theuseof thecostingsystem.Basedonthediscussion,thereadergetsto knowthatjobcostingis commonin businessessuchas printing,construction,as wellas medicalservices.Thispointof viewis validsince, in thesebusinesses,there may be projectsthattheorganizationswantto completewithin acertainperiod.In orderto achievethegoalsof suchprojects,thecoststo beincurredandtheresourcesrequiredcan be plannedthrough a costingsystem(Kinney &amp Raiborn, 2013).

Thispostprovidesadeepunderstandingof jobcostingandhowitrelatesto customersatisfaction.From thepost,one can understandthattheorganizationsthat haveadoptedtheuseofa jobsystemstriveto fulfilltheuniqueneedsof thecustomers.Assuch,thissystemis crucialin ensuringthatservicesprovidedto customersare of high quality.Withthissystem,itbecomeseasyto recordtheordersmadeby customersandsupplytheproductspromptly.Anyonewhoreadsthepostcan agreeto thefactthat,since organizationsservemanycustomers,eachcustomershouldbe giventheattentionheorshedesires(Blocher et al, 2013).

Thepostis educative, elaborate,andarticulatein its discussionof theprocesscostingsystem.By readingthepost,thereadergetsto understandthat,apartfrom thejobcostingsystem,an organizationcan alsoallocatecoststo theprocessesbeingundertakenin themanufactureof rawmaterialsinto finishedgoods.Itis truethatthis formof costingmostlyappliesto businessesinvolvedin theproductionof servicesorgoods,which can be termed as standardized.Thestudentfurtherexplainstheprocesscostingsystemby givinga descriptionof theorganizationsthat applythistechnique.With a clearindicationthatthesystemisusedby distilleries, chemicalcompanies,andplasticmanufacturingcompanies,thestudenthelpsthereaderto understandwhenprocesscostingis applicable.Theposthas alsobroughtout thedifferencesthat existbetween thevariouscostingmethods.From thepost,itis clearthatthemethodsare not thesameas there are slightdisparities(Mahama &amp Cheng, 2013).

References

Blocher,E. J., Stout, D.E, Juras, P.E., and Cokin, G (2013). Costmanagement: A strategic &nbsp emphasis.Boston, MA: McGraw-Hill Irwin Publishing.

Krumwiede,K. R., &amp Walden, W. D. (2013). Dream Chocolate Company: Choosinga Costing&nbspSystem. Issuesin Accounting Education,28(3),637-652.

Kinney,M. R., &amp Raiborn, C. A. (2013). Costaccounting: Foundations and evolutions.Cincinnati: South-Western CENGAGE Learning.

Mahama,H., &amp Cheng, M. M. (2013). The Effect of Managers` EnablingPerceptions on Costing&nbspSystem Use, Psychological Empowerment,and Task&nbspPerformance. BehavioralResearch&nbspin Accounting,25(1),89-114.