Costing Process V Job Costing Term Paper

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Another example of pure job costing is web development, where the processes themselves vary hugely from project to project, meaning the cost and time involved also varies.

Response

Dosch & Wilson (2010) do seem to do a good job of defining job and process costing, and the person who posted this seems to have understood these definitions fairly well in the abstract -- that is, the definitions provided seem reasonable and the application of these definitions to businesses chosen by the poster are explained in a way that clearly links them to these definition. At the same, the poster seems to have had some trouble accurately identifying companies where job costing might be employed, despite grasping the abstract technicalities of the definition of job costing.

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While it is likely that an individual laborer might be able to identify that they worked on a particular section of an airplane or wall of a mobile home, thus tying labor to specific products and making job costing seem a likely choice, it is also highly likely that these laborers repeat exactly the same tasks day in and day out, and that over the course of a year they manufacture many of the exact same type of airplane or mobile home. A factory that churns out mobile homes probably uses the same design or designs, with the same material and a set number of hours needed to complete each home, making process costing more effective. The same is true for airplanes......

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