Compare and contrast job order and process costing.
Written Assignment – ACC 300
Phil and Jim were roommates in college and have always competed against each other. Since graduating from college, both men were hired at the same company. The company pays bonuses at the end of year based on performance, which also includes a weekend on their boss’s yacht. Two years in a row Jim managed to surpass Phil’s performance. This year, Jim is determined to get the highest bonus. Imagine you are the accountant and knowing that these two men are rivals, answer the following questions in 2 – 3 pages.
1. Compare and contrast job order and process costing.
2. Explain the steps necessary to create a master budget. Create your own manufacturing company. Using EXCEL, create the sales budget, production budgets (3), the income statement, and the balance sheet. State any assumptions used to create your budgets. (Calculations and formulas are required to receive full credit.)
3. Based on the manufacturing business you create, propose the goals that should be measured on the corporate score card to ensure that bonuses are paid to the manager making the greatest financial contribution.
4. Analyze the metrics below for Phil & Jim and discuss who should receive a bonus based on performance. For the manager not chosen, discuss the costs you would challenge to explain why you did not meet your goals.
5. Use appropriate spelling, grammar, and citations.