These cost accounting manuals describe traditional product costing practices, namely, job order costing, standard costing, and direct costing.
Accumulation practices include job order costing, process costing, and operational costing (Rushinek 1983, Lanen et al.
Job order costing is typically covered in cost accounting and managerial accounting courses and appears in virtually all such textbooks (e.
Although other approaches have used LEGO[R] blocks to teach management accounting terms and techniques (Roth, 2005; Morgan, Martin, Howard, & Mihalek, 2005; Burns & Mills, 1997), this simulation is different in two major ways: (1) it focuses solely and comprehensively on job order costing whereas previous articles have only superficially covered job order costing, and (2) by using the variety of materials called for in this simulation, the product and manufacturing process is more realistic, affording the students the ability to clearly see the differences between direct materials and indirect materials, direct labor and indirect labor, and other items that constitute manufacturing overhead.
How did this project compare to learning about
job order costing by reading the book?
The final section covers traditional managerial accounting topics of classifying costs,
job order costing, direct and absorption costing, and standard costing.
The accountant asks to look at the
job order costing system to try and find an answer.
This month we'll continue with a discussion of the specific methods of cost accumulation using job order costing.
We characterized job order costing as generally appropriate when large, unique or special-order items are produced--for instance, airplanes, grand pianos or a special order for fifty tractors.
Karp further stated, "GERS and Harvey are jointly developing a
job order costing module that not only is expected to validate the profitability of our complex installation projects, but is expected to enable us to increase the productivity and profitability of our installers.
For example, if a chapter includes job order and process costing, only the
job order costing material is tested.
The two traditional methods of product cost accounting are
job order costing and process costing.
