Job Costing & Process Costing

ACC 311 Module Two Short Paper Guidelines and Rubric
Overview: Different costing methods provide companies with different options for categorizing and calculating costs. Managers and cost accountants should
understand the differences between costing methods so that they can choose and properly implement the method that best suits their needs for decision
making. For this short paper, you will compare the characteristics of job costing and process costing methods and give examples of when and why each might be
used. You will also address the use and benefits of costing for service businesses.
Prompt: Review Chapter 4 in the textbook and the Job Order Costing vs. Process Costing video to support your work on this short paper. Specifically, the
following critical elements must be addressed:
 Job Costing vs. Process Costing: Characteristics: Compare the characteristics of job costing and process costing. Consider how each method impacts the
accounting work involved.
 Job Costing vs. Process Costing: Example: Select a company of your choice and explain when they might use job costing and when they might use
process costing. Cite your work and include sufficient detail.
 Service Industry Costing: Differences: Explain why costing methods used in the service industry are different from those used in the manufacturing or
merchandising industries.
 Service Industry Costing: Benefits: Select a service industry company of your choice that uses costing and explain the benefits of costing for service
companies. Cite your work and include sufficient detail.
Rubric
Guidelines for Submission: The short paper should be 2–3 pages, double spaced, with 12-point Times New Roman font, one-inch margins, and citations in APA
format.
Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value
Job Costing vs.
Process Costing:
Characteristics
Meets “Proficient” criteria and
displays keen insight into the
differences of the work involved
Compares the characteristics of
job costing and process costing
Compares the characteristics of job
costing and process costing, but the
comparison is inaccurate, unclear, or
missing key elements
Does not compare the
characteristics of job costing
and process costing
22.5
Job Costing vs.
Process Costing:
Example
Meets “Proficient” criteria and
provides highly detailed examples
of when a company might use job
costing and process costing
Provides an example of when
a company might use job
costing and when they might
use process costing
Provides an example of when a company
might use job costing and when they
might use process costing, but the
example is inappropriate or illustrates
only one type of costing, or the
explanation of when each is used is
inaccurate, unclear, or incomplete
Does not provide an
example of when a company
might use job costing and
process costing
22.5
Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value
Service Industry
Costing:
Differences
Meets “Proficient” criteria and
explains the practical impact of
these differences on the cost
accounting process
Explains why the service
industry may use different
costing methods than the
manufacturing and
merchandising industries
Explains why the service industry may
use different costing methods than the
manufacturing and merchandising
industries, but the explanation is
inaccurate, unclear, or incomplete
Does not explain why the
service industry may use
different costing methods
than the manufacturing and
merchandising industries
22.5
Service Industry
Costing: Benefits
Meets “Proficient” criteria and
demonstrates a keen
understanding of the day-to-day
impact on business operations
Provides an example of a
company in the service
industry that uses costing and
explains the benefits of
costing for service companies
Provides an example of a company in
the service industry that uses costing
and explains the benefits of costing for
service companies, but the example is
inappropriate, or the explanation of the
benefits is inaccurate, unclear, or
incomplete
Does not provide an
example of a company in
the service industry that
uses costing, or does not
explain the benefits of
costing for service
companies
22.5
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a professional
and easy-to-read format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or
organization that prevent
understanding of ideas
10
Total 100%