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Hello everybody today we're going to be talking about job costing this is chapter 4 and the cost accounting book that we are using and so let's get started some of the key points that we're going to be talking about in this class the first one is what is a cost object a cost object are anything that which measure which a measurement have cost the desire, so it could be a vehicle it could be a computer it could be anything that the particular company is wanting to measure their costs for now of course we know that what our direct cost direct costs are cause that we can be traced directly to the cost object in an economically feasible way and then of course indirect costs are costs the object that can be traced to that cannot be traced to a cost object in an economically feasible way so those things you should be very familiar with now the couple other things that we haven't talked about before is a cost pool is a group of individual indirect cost items and then of course the cost allegation a location basis systematic way to link an indirect cost or a group of indirect costs to cost objects, so those are just a couple of the definitions that we are going to be talking about in the information that we're going to be covered tonight now there are going to be two types of costing systems that we're going to be talking about the first one is a job costing system, and then we also have a process costing system a job costing system is basically you are tying your cost directly to a particular item, so it's more like an airplane or a unique piece furniture something that is unique to you know you don't make it in a bunch now a process costing system is basically for a company who mass-produce things like a soft drink or cereal or things like that where they're on assembly line and so that they go through very quickly, and you can't really have direct costs associated which each individual box are each individual bottle of soft drinks so the definition that we talked about in job costing system the cost object is a unit or multiple units, and it's the distinct product or service which we call a job each job generally uses different amounts of resources and then the process costing is the cost object is masses of identical or similar units of product or services in this type of system we divide the total cost by producing an identical or similar product or service by the total number of units produced to obtain the per-unit cost so basically think of job costing is a more unique system and process costing is basically you're producing multiples of the same thing now some different types of job costing and process costing what type of companies use these are actually located on page 109 in your book if we're looking at a job costing in the service sector if you're doing an audit you're doing an audit for one particular company, so that's considered job costing you can easily trace back the cost to that one job consulting engagements so same thing you're...
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