Accounting and Finance
Essay by asmashaikh • August 9, 2016 • Annotated Bibliography • 412 Words (2 Pages) • 1,993 Views
Annotated Bibliography in APA Format
Finance & Accounting for Decision making
Herzing University
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Annotated Bibliography [Bennett’s Body Company]
Anthony. (05/2010). Accounting: Texts and Cases, 13th Edition. [VitalSource Bookshelf Online]. Retrieved from https://online.vitalsource.com/#/books/1259302172/
The Company named Bennett Body which is a custom manufacturer of truck bodies is controlled by Ralph Kern. There is a system comparison between the two companies reviewed by Kern, Bennett Body Company and the Conley Corporation.
As company, Bennett Body used job order costing system for accumulating the cost of production whereas Conley’s Corporation uses process costing for calculating the amount of cost production. As the Bennett Body Company follows the system of costing products on a per job order basis it had a higher cost of paperwork. As per the information company has products unique from each other. Company makes products based on customer specification making unique with each other. But Conley has its own standard design and based on that design costs of production follows the department basis. In Conley system there is less work than in Bennett system Conley only compiles the actual aggregate labor, overhead costs, and material with the information on the number of units produced. Different components like changing material prices, labor rates, material waste or savings, labor costs affects the direct cost variance in Conley system. Conley’s unit standard, if genuinely created; give the premise to planning spending plans by the office for direct work and material expenses. There should be a monthly budget to support control of production overhead costs as the Conley’s standard overhead is not the actual budget. Lack of the repetitive jobs makes cost control difficult in Bennett’s custom job order environment.
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