L8 - Notes PDF

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Important lectures notes on Chapter 8 with Professor Shan Wang...

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HYBRID COSTING (L8) Cost Accounting System

Operation Costing Method  The Hybrid-costing systems use process costing to account for the conversion costs and job costing for the material and customizable components  One specific type of hybrid-costing system is known as the Operation-Costing System o An operation is a standardized method or technique that is performed repetitively resulting in different finished goods o Within each operation, all product units are treated exactly alike, using identical amounts of the operation’s resources  Applicable for products in which: o Materials differ between products o The same labor and OH costs are incurred for all products  EX. Include: manufacturers of televisions, dishwashers, washing machines, and shoes who tend to use hybrid-costing systems...