MGA 202 1st Edition Lecture 9Outline of Last Lecture: Chapter 3I. Activity Based CostingII. The Steps of ABCIII. Using ABCIV. Benefits of ABCOutline of Current Lecture- Chapter 4Job-Order Costing- Many different products - Made to order - Example: large scale construction Process Costing- Producing many units of a single product - Each unit being identical - Example: Coca Cola bottles - THINK: what would Coca Cola do?Exercise 1. Process Costing is used for products that are…similar & produced continuously.Answer: Choice BExercise 2.Which of the following companies would be likely to use Process Costing rather than job-order costing?Answer: Heinz for ketchup, Choice BSimilarities between job-order & process costing 1. Both assign DM, DL, & MOH2. Use same accountsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.3. Flow of accounts is always the sameDifferences in job-order & process costing1. Type of product 2. Process accumulates unit costs by department & job-order accumulate by individual jobs3. Process compute unit cost by department & job-order computes unit cost by job on the job cost sheet Cost Flows Cost flows are displayed in the power points. Be sure to have a clear understanding of how costsflow from account to account. Processing Departments- Any unit in an organization where materials, labor, or overhead are added to the product- The activities performed in a processing department are performed uniformly on all units of production- The output of a processing department are homogeneous- Products flow in a sequence from one department to anotherNext Lecture-2/25-Continue w/ Chapter 4 I. Costs with partially completed unitsII. How to calculate equivalent units of production III. How to calculate cost per equivalent