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    jeffrey80's Avatar
    jeffrey80 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 11, 2009, 08:49 PM
    Costng method
    Hi...
    Anyway... im in doubt here... Does Job Order Costing Method is suitable to be applied in a cake bakery business?

    Hi all...

    Why marginal costing method is not suitable for manufacturer for external reporting and tax purpose?. many thanks for the answer.. :-)
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Feb 12, 2009, 03:00 AM
    Yes Job order is suitable for a bakery business because you have standard products produced in batches.
    jenanawi's Avatar
    jenanawi Posts: 13, Reputation: 1
    New Member
    		  
    #3

    Feb 12, 2009, 08:00 AM

    Dear hamzashakaa,
    Please justify you answer more detail
    Thank
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #4

    Feb 12, 2009, 08:55 AM

    In the bakery system there are many batches of products such as bread, coockies, Cakes and other. So you should open a job order sheet for every batch. Moreover, there are different materials used in each batch, the materials used to produce cookies for example are different from the materials used to produce bread. Accordingly, you can't use process costing in this business because the products are not identical.
    jenanawi's Avatar
    jenanawi Posts: 13, Reputation: 1
    New Member
    		  
    #5

    Feb 12, 2009, 09:18 AM

    Thank you very much hamzashakaa.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #6

    Feb 12, 2009, 07:19 PM

    Moved to homework and merged
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