what are the main differences between job order costing and process costing?
- JC is used when each product is unique
- JC accumulates costs to diff jobs
- PC accumulates costs to diff processes
what are the characteristics of process costing?
- mass production of one product
- each product identical
- each product undergoes an identical production procedures
- each unit consumes the same amt of costs
what is an incomplete unit?
a unit still in the production process, partially completed, by the end of the period (WIP)
what is an equivalent unit?
how many completed units would have been made had the same amount of resources and costs been used
what is spoilage?
amount of production wastage throughout the production process
what are spoiled units?
units produced that do not meet the specified quality standards. they cannot be reworked and are thus discarded.
what is normal spoilage?
spoilage which can be expected under normal (efficient) operating conditions (product cost)
what is abnormal spoilage?
spoilage which is not expected under normal operating conditions and is treated as a period cost
