There Are Two Major Types of Companies: Those That Use

question 155

Essay

There are two major types of companies: those that use a job-order costing system and those that use process-costing systems. A. Explain the differences between the two types of systems.
B. List 3 examples of each type of company.

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Definitions:

Favorable

A term used in finance and accounting indicating that actual performance is better than the expected or budgeted performance.

Unfavorable

A term used in budgeting and accounting to describe a financial condition or variance that is worse than expected or budgeted.

Revenue Variance

The difference between actual revenue earned and the budgeted or expected revenue.

Spending Variances

The difference between the actual amount of money spent and the budgeted amount for various cost items.