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Good question, and I thank him for the invitation
It orders the production costs of the system
This system follows the enterprises that produce goods with special specifications according to the customer's wishes, are assembling a production cost of each command separately, unlike the stages that follow in industries that produce goods typically goes through various stages until they become final product costs.
Examples of industries where used commands costs (furniture factories, clothing, shipbuilding, printing presses, and maintenance workshops).
Activity cost accounting system :
is concerned with the treatment of the problem of load indirect costs and allocated on Product R through the grounds that the activity is the subject of the cost to be measured first, and then determine the cost of the activity is determined by the cost of products as much as it consumes from these different activities, and so at odds followed costing system offline which assumes that the products are the cause of resource consumption and therefore bear the indirect costs on products in accordance with the volume of production of each product, assuming that only indirect costs associated with production, regardless of the nature of each activity and how it relates to whether or not the size of the production volume.
Job order costing is used when products produced are unidentical. This way the firm is alble to allocate only the cost involved in producing an order to the products produced. Mean while activity based costing is a systematic and more advanced way of allocating overhead cost. it first allocates the cost to cost centers and then to products that make use of the services of these cost centers. This is better than the traditional approach of using labour hours or machine hours in allocating overheads. This is because some products with lower machine hours may actuall demand more overhead comsuption while some products with more machine hours consumed less overheads. The end result will be to charge the products with more machine hours a higher proportion of the overheads than the products which actually consumped the overheads if the traditional approch is used, which is unfair.
I leave the answer to the experts, specialists in this field
Thanks for the invitation
I agree with the Mr. Georgei answers
Add to that the jop order it one of the traditional systems of costs .while the ABC it one of the modern systems of costs
With my best wishes to you
Job order costing is a cost accumulation system while activity based costing is a cost allocation system.
Agree with the answers of Tamer and Georgei Assi
Thanks for the invite ............................ agreed with the answers Mr. George
sorry sir, i am not knowing about it, but thank you for making me to know more about it in internet.
full agree with answer given by mr. george
thank for the invitation,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Mr. George
thanks <<<< agree with answers >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
