Quiz 6: Process Costing

Business

Identify the difference between job order and pro cess costing: These two accounting systems are useful for cost calculation of the process and job. Major differences are given below: img

Explanation: • Option (a): Product should be homogeneous not heterogeneous. • Option (b): Accumulation of material and conversion cost is not sufficient answer to work process costing well. • Option (d): Not a similar amount but it should be similar doses of inputs is required.

Difference between s parallel processing and sequential processing: SEQUENTIAL PROCESSING: • In this process, units will pass through before one process they can be worked as in the sequence. • In this process firm, units are passing a series of production departments. In each department, materials, labour and overhead may be needed. • Upon completion of a particular process, the partially completed goods are transferred to the next department. • After passing through the final department ,the goods are completed and transferred to the warehouse. PARALLEL PROCESSING: • In this type of processing two or more sequential processing's are required to produce a single good. • Consider, for example, the manufacture of hard disk drives for personal computers. • In one series of processes, write heads and cartridge disk drives are produced, assembled, and tested. • In a second series of processes, printed circuit boards are produced and tested. • These two major subcomponents then come together for assembly in the final process.

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