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Week 2 Discussion
Start by choosing one of the following two topics to discuss as your initial post and reply under the appropriate thread below:
- Something old, something new: Did you learn something in this chapter that you did not know before? Or, did you gain confidence because you determined that you have already mastered a concept presented in this chapter?
- Managerial Accounting : Why do companies prefer the Job Order Cost system versus just recording costs in the general ledger (financial accounting)?
Week 2 Discussion Answer
Job order costing system becomes beneficial to the company in various ways. Assigning manufacturing costs to the company’s product is very critical in every business. Initially, it is fairly easy to identify the direct materials and direct labor which matches or can be traced to a product, and using the job order costing, manufacturing overhead costs can be allocated properly by the right choice of allocation base.