what are the two major differences for service companies (compared to manufacturing companies) that use a job order cost system?A hospital has a kitchen which provides meals to all patients. The kitchen has annual costs of $520,000. What is one possible activity base that they could use to allocate the costs of the kitchen topatients in the hospital?A new company, with only one product, estimates their annual sales will be 20,000 units although their current facility could produce up to 35,000 units. Each unit will sell for $34 and has variablecosts that add up to $19 per unit. The company has fixed costs of $550,000. What is the company's break-even point? After calculating their break-even point, what advice would you give to thecompany's owner?

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what are the two major differences for service companies (compared to manufacturing companies) that use a job order cost system?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

what are the two major differences for service companies (compared to manufacturing companies) that use a job order cost system?
A hospital has a kitchen which provides meals to all patients. The kitchen has annual costs of $520,000. What is one possible activity base that they could use to allocate the costs of the kitchen to
patients in the hospital?
A new company, with only one product, estimates their annual sales will be 20,000 units although their current facility could produce up to 35,000 units. Each unit will sell for $34 and has variable
costs that add up to $19 per unit. The company has fixed costs of $550,000. What is the company's break-even point? After calculating their break-even point, what advice would you give to the
company's owner?

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Activity-based-costing (ABC) can: Group of answer choices make managers realize that only products determine company profitability. only be used in a process costing system and not in a job order costing system. be used to determine the cost of direct materials and direct labor. be used with either a job order or a process costing system.
How does a manufacturing company calculate the cost of goods sold? How is this different from a merchandising company?
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What are the major differences between job-order costing and process costing systems? Give an example of a well-known company that might use job-costing and an example of a well-known company that might use process costing. Explain why you have chosen the companies that you did.
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