Cost-Volume-Profit Analysis & Job Costing
In this module, we examine two key concepts of accounting: cost-volume-profit analysis and job costing. The cost¬volume-profit analysis contains the breakeven point that most managers and accountants alike understand. We will analyse how to determine the breakeven point and the output level needed to achieve the targeted operating income. This module will also focus on the CVP analysis is used in decision-making and what key numbers are taken into account by the decision-makers. In this module, you will see how cost-volume-profit analysis helps managers minimise risks and increase profits.
This module also focuses on job costing. We will look closely at the building-block concept of costing systems and discuss the approaches to evaluating and implementing job-costing systems within the organization. Companies do not like to lose money, so understanding how much it costs to make a product or offer a service is essential to maintaining the bottom line for all organisations. Understanding the costs and profitability of jobs helps managers pursue their business strategies, developing pricing plans, and meet external reporting requirements.
Job Order Costing vs Process Costing
This video discusses the differences between job-order costing and process costing in the context of managerial accounting. Examples are provided to illustrate how job-order costing is used for heterogeneous products while process costing is used for homogeneous products, with an emphasis on how costs flow through departments rather than jobs under process costing (with work-in-process inventory accounts for each department).
Creating Job Cost Reports in QuickBooks
This tutorial reviews the basic reports to create in QuickBooks for job costing. Job Cost reports show you all the income and expenses per individual job, so you can tell if the job is profitable or not.
Discussion:
Why might an advertising agency use job costing for an advertising campaign by Pepsi, whereas a bank might use process costing to determine the cost of checking account deposits? How are these approaches similar? What importance to these results make to managers?
Attachment:- discussion.rar