ACT3131 ASSIGNMENT INSTRUCTION For this assignment, students are required to (i) identify a local business / organization that

uses job order costing or process costing (ii) interview the owner/ manager or accountant about the job order , process or departments and the documents the business uses to accumulate product costs. (iii) (iv) apply the knowledge learnt in this course to the organization. write a report that summarizes the information that you have obtained from the interview.

The report should include the following: (a) The name and position of individual (s) you interviewed (b) The name of the business, products/ services and the type of operations performed and industry in general (c) Vision, mission and strategic objectives of the organization (d) Cost classification. Describe how costs are classified in the organization. Also provide examples of costs according to the various classification given in the class. (e) The costing system used to accumulate product cost. Provide justification. Students may construct a numerical example to show how the product costing system works in the organization. Give advantages and disadvantages of the costing system used. (f) Identify the product costs involved in your organization, such as direct material, direct labor and manufacturing overhead. (g) A description of the process of starting and completing a job / product (h) A description of the accounting process and the documents used to track a job (i) Comments. Include your responses to these questions: Did the person(s) you interviewed know the actual amount of direct materials, direct labour and overhead charge to a particular job? If the job includes some estimated costs, how are the estimates determined?

Do the costs affect the determination of the selling price of product or service? Compare the documents discussed in the textbook with the documents used in the company/firm you visited. How are they similar and how are they similar? In your opinion, does the business record and accumulate its product cost accurately? Explain.

To complete this assignment, students may use the materials available in the module or tutorial notes. However, students are strongly encouraged to provide additional evidence of reading and research findings for this assignment.