Phase 2 Discussion Board Assignment Example | Topics and Well Written Essays - 1750 words

Phase 2 Discussion Board - Assignment Example Those that deal with the maintenance of motor engines such as retail shops cannot be considered part of the automotive industry. Since the development and upgrade of motor engines started from as long as 1890s, significant development and changes in the past years. For instance, the production of motor engines for use has greatly increased since today, the world population has grown and there is the growing need by consumers to have vehicles. With the upgrade of vehicles, there have been developments that have been mainly concentrated on the safety side of the vehicles (Weygandt, Kieso & Kimmel, 2010).   They have been ranked stricter on follow-ups than ever before, ranging from weight to security and to resilience, when it comes to today’s vehicles. This has come with the cost of new materials that have brought out new and advanced techniques for the construction and designing of vehicles. Before there was the knowledge that plastic could make vehicles, the sole material us ed at the time was metal. With the introduction of plastics, there has been advancement in the technology used for making newer vehicles. With the new technologies, manufactures have been able to answer to rising demands for advancements. Plastics have the ability to make vehicles to appear wonderful and attracting. Again with the introduction of plastic in vehicles, it has been known that they use current technology to make enhance vehicles. Another new development has been the introduction of new spark plugs that have been noted to endure more miles than those currently present. With the introduction of the new spark plugs, there have been concerns on the usage and cost of the spark plugs. From the design, development, manufacture, marketing and selling of the plug, there are concerns about how to design a more reliable method of choosing between the Job Order Cost System and the ‘Process Costing System’ (Crosson & Needles, 2011).   Compare and contrast between the Job Order Cost System and the Process Costing System. The Job Order Cost System is a system that is used when products are made with the basis on specific customer orders. With this system, every product that is manufactured is considered as a job, thus costs are made depending on the number of jobs done. With the production of these products, another thing that is considered is the services. Services rendered are also considered as a job and count in the overall costs. The system is designed to take into account and track by job the costs which are incurred while producing each job (Warren, Reeve & Duchac, 2012).  This includes materials used, labor, and overhead that are present in the environment where the manufacture is taking place. When it comes to the process of ‘job order costing system’, ‘the record keeping’ and ‘cost assignment problems’ are complex in the system particularly when a company sells many different products and services compared to when it only has a single product or service. With the different products, the costs become different. Again, cost records must be maintained for each specific product or job. In order to track data for the jobs produced, there are certain documents that are used namely; 1. Job cost sheet: This is a document that is applied to track the total job cost summary detailing from the job number, job and client data and cost that involves materials,