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Unit 3 Discussion Question 1 (Dean Foods)

Unit 3 Discussion Question 1 (Dean Foods)
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ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 3: Unit Costs for Decision Making

Unit 3 Discussion Question#1
As you know from your reading in Chapter 3 of Managerial Accounting, a company may use either job-order costing or process costing to determine the cost of manufactured products.

This Web Field Trip brings you to the websites of three companies. Visit each company's website to learn about their products. As you read about each company's products, decide whether that company uses job-order costing or process costing. You will draw on this information as you complete the Exercise that follows this Web Field Trip.

GoldCorp, Inc.
- Go to GoldCorp, Inc.
- Click on Company, and read the company profile.
- Click on Operations on the top navigation bar.
- Read any three of the mine operations listed, and find out how well they are doing.
- Go to Investors on the top navigation bar.
- Click on Reserves and Resources. Evaluate with this additional information how the three units you selected are really doing and what type of Unit Costs they are using.

Dean Foods Co.
- Go to Dean Foods.
- Click on About Us.
- Read "About Us..."
- On the right-hand side, click on Our Operations and History, and read them.
- Optional: click on Brand & Products, and read the areas "Milk," "Organic Products," and "Ice Cream & Novelties."

Stanley Works
- Go to StanleyBlack&Decker.com
- Click on the Products & Services at the top navigation bar.
- Review the three types of products Construction and DIY, Industrial, and - Security.
- Review all the products that Stanley offers.
- Optional: Click on Company, then History. Read "History."

Discussion Question
Choose one of the companies you looked at in the job-order costing vs. process costing Web Field Trip. Which type of costing do you think that company uses, process costing or job-order costing? Why do you think so? What might the consequence be if the company chooses to use the other method of costing? Be specific.

 

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