SDMC Major Distinctions Between the Job Costing & Process Costing Systems Essay

Question Description

1 –

Prior to beginning work on this discussion, please read the article How Boeing Tracks Costs, A to Z (Links to an external site.) and in an initial post of at least 200 words explain the change in Boeing’s costing approach from one based on job-costing to a process-costing approach. In your post,

  • Demonstrate the major distinctions between the job-costing and the process-costing systems.
  • Explain what Boeing means by process accounting.
  • Discuss the advantages of the process accounting approach at Boeing.
  • Assess how the new process accounting approach affect each business unit’s incentives and tools to control costs.

Guided Response: Review several of your peers’ posts. In a post of at least 100 words, respond to at least two of your peers’ posts in a substantive manner. In your posts provide information that your peers may have missed or may have not considered in regard to the job and process costing systems. Do you agree with your peer’s conclusions that the goals of either system are to find the cost of manufacturing one unit of product? Why or why not? Is the way the two systems accumulate costs different?


Prior to beginning work on this discussion, please download and read the report Implementing Activity-Based Costing (Links to an external site.) published by the Institute of Management Accountants (IMA). IMA argues that although activity-based costing (ABC) is not a panacea, it is essential for a company to implement a management accounting system such as ABC for all its stakeholders—its employees, its community, its loyal customers, and its shareholders—to understand its cost structure.

After reading IMA’s report, in an initial post of at least 200 words, discuss what activity-based costing is and examine how it impacts the role of management accountants in the broader context of performance management that integrates time, quality, service levels, risk, capacity planning, and costs.


Prof. Angela


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