Job Costing Vs. Process Costing

Job Costing Vs. Process Costing

Job Costing Vs. Process Costing

ACC 311 Module Two Short Paper Guidelines and Rubric

Overview: Different costing methods provide companies with different options for categorizing and calculating costs. Managers and cost accountants should understand the differences between costing methods so that they can choose and properly implement the method that best suits their needs for decision making. For this short paper, you will compare the characteristics of job costing and process costing methods and give examples of when and why each might be used. You will also address the use and benefits of costing for service businesses.

Prompt: Review Chapter 4 in the textbook and the Job Order Costing vs. Process Costing video to support your work on this short paper. Specifically, the following critical elements must be addressed:

 Job Costing vs. Process Costing: Characteristics: Compare the characteristics of job costing and process costing. Consider how each method impacts the accounting work involved.

 Job Costing vs. Process Costing: Example: Select a company of your choice and explain when they might use job costing and when they might use process costing. Cite your work and include sufficient detail.

 Service Industry Costing: Differences: Explain why costing methods used in the service industry are different from those used in the manufacturing or merchandising industries.

 Service Industry Costing: Benefits: Select a service industry company of your choice that uses costing and explain the benefits of costing for service companies. Cite your work and include sufficient detail.

Rubric

Guidelines for Submission: The short paper should be 2–3 pages, double spaced, with 12-point Times New Roman font, one-inch margins, and citations in APA format.

Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value

Job Costing vs. Process Costing: Characteristics

Meets “Proficient” criteria and displays keen insight into the differences of the work involved

Compares the characteristics of job costing and process costing

Compares the characteristics of job costing and process costing, but the comparison is inaccurate, unclear, or missing key elements

Does not compare the characteristics of job costing and process costing

22.5

Job Costing vs. Process Costing:

Example

Meets “Proficient” criteria and provides highly detailed examples of when a company might use job costing and process costing

Provides an example of when a company might use job costing and when they might use process costing

Provides an example of when a company might use job costing and when they might use process costing, but the example is inappropriate or illustrates only one type of costing, or the explanation of when each is used is inaccurate, unclear, or incomplete

Does not provide an example of when a company might use job costing and process costing

22.5

 

Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value

Service Industry Costing:

Differences

Meets “Proficient” criteria and explains the practical impact of these differences on the cost accounting process

Explains why the service industry may use different costing methods than the manufacturing and merchandising industries

Explains why the service industry may use different costing methods than the manufacturing and merchandising industries, but the explanation is inaccurate, unclear, or incomplete

Does not explain why the service industry may use different costing methods than the manufacturing and merchandising industries

22.5

Service Industry Costing: Benefits

Meets “Proficient” criteria and demonstrates a keen understanding of the day-to-day impact on business operations

Provides an example of a company in the service industry that uses costing and explains the benefits of costing for service companies

Provides an example of a company in the service industry that uses costing and explains the benefits of costing for service companies, but the example is inappropriate, or the explanation of the benefits is inaccurate, unclear, or incomplete

Does not provide an example of a company in the service industry that uses costing, or does not explain the benefits of costing for service companies

22.5

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format

Also, Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

10

Total 100%

 

  • ACC 311 Module Two Short Paper Guidelines and Rubric
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