Discuss how the predetermined factory overhead rate can be used in job order cost accounting to assist management in pricing jobs.

DB2.docx

Be sure that you are putting some thought into your discussion 150-200 words. Please answer the following questions:
1.)
Name two principal types of cost accounting systems.

· Job Order Costing System
· Process Costing System
2.)
Which system provides for a separate record of each particular quantity of product that passes through the factory?

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3.)
Which system accumulates the costs for each department or process within the factory? Why?

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4.)
Discuss how the predetermined factory overhead rate can be used in job order cost accounting to assist management in pricing jobs.

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