Costing System

What type of costing system would you use for the company you selected for the Small-Business Idea Paper which was due in Week Two? Why did you pick this costing system? Review another student's response to this question. Reply to that student and indicate if you agree with his or her choice of costing system and with his or her rationale. In your response, recommend another costing system to consider. Provide your rationale for your recommendation.

Tolleson, T. (n.d.). Job order costing. Retrieved from http://faculty.txwes.edu/ttolleson/course5/documents/JobCosting.pdf .

Not Just BBQ will follow the job order costing method for its costing system. Job order cost accounting allows a process to track the progress and cost of each job. By tracking the cost of materials, overhead costs and labor costs, a true price for an item can be established. A fluctuation in costs exists for each run of most items. For example, dependent on the season, salmon can vary in price. It is necessary to have fresh or flash frozen salmon with the preference always to have fresh salmon to smoke. The herbs needed are also more difficult to obtain in the winter and are higher in price. Currently, the owner is always checking prices of salmon and different meats to ensure that the prices given are valid. The rubs use dry ingredients and more stable in cost. Although, this area will also benefit from this process to ensure the prices charged are accurate. The website pricing will benefit by ensuring the prices given are accurate by using the job order costing method to ensure a profit. By using this costing method, a base line cost for all of the items for sale can be established and monitored to ensure a proper price is established.

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