Topic 4: Job Order Costing

Learning Outcomes: 1 , 2, 3, 4, 5, 6

Learning objectives

1. Discuss the role of product and service costing in manufacturing and nonmanufacturing firms.

2. Distinguish between job-order costing and process costing.

3. Normal costing and overhead allocation

4. Compute a predetermined overhead rate, and explain its use in job-order costing for job-shop and
batch-production environments.

5. Describe the two-stage allocation process used to compute departmental overhead rates.

Resources for this topic

1. Read the required Text - Chapter 4

3. Prepare concept/theory/questions, exercise and problem type questions

WORKSHOP ACTIVITIES: Chapter 4

Topic DQ MCQs Exercises/Problems

Job costing 3, 4, 5, 9 4.1-4.6 4.31; 4.32 4.33; 4.36