(Course Two of the Finance for Non-Finance Managers Program)
The primary object of cost accounting is determining what it will cost a company to produce a product or service. Given the variety of costing methods and types of production cycles a number of different costing techniques are used. It makes sense to select a costing method which fits with the specific type of production.
This course acquaints managers with different cost methods that are being used. One of these is the job order costing method. It is a method which is best suited for non-serial production cycles. The products of these businesses differ substantially in terms of costs incurred, though oftentimes the products themselves may not differ substantially. In the real word the method is applied in businesses that are using Customer order manufacturing, Make-to-order or Engineer-to-order manufacturing types. Marketing companies are a typical example.
This illustration from customer order manufacturing and project-oriented industries is a perfect example of how non-finance managers will benefit from this course.