Essay: Entrepreneurial Decision in Management Accounting

Sample Essay

In Job Order Costing manufacturing and production is divided into individual jobs to accumulate the cost of a single job separately.  This helps in identifying only the relevant cost associated with a specific job (Hilton, 2005). The Job Order Costing system can be applied to Sprinturf to effectively monitor the total costs of various turf installation contracts individually. The company has many components in each of the three categories depending on the nature of turf installation. The basic cost components incurred in almost all jobs of the company are described below.

Direct Material

The two most significant and common material required for each of the company’s products and jobs are rubber and synthetic fiber.

Rubber: The Company uses rubber granules in place of sand as infill for the turf solutions it provides to stadiums, parks, schools and fields.

Synthetic Fiber:  A mixture of multiple synthetic fiber types is used in place of natural grass and traditional Astroturf systems (Sprinturf, 2005).

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