Presence of a predisposing condition - Predisposing conditions include peptic ulcer disease, acute appendicitis, acute diverticulitis, and inflamed Meckel diverticulum. Indeed, acute appendicitis is still one of the common causes of bowel perforation in elderly patients and is associated with relatively poor outcomes.
(2) Two-Stage Allocation: It can be observed that both the costing systems follow a two stage allocation procedure. In traditional costing, in the first stage, overhead costs are allocated to production departments. But in ABC, in the first stage, overhead costs are assigned to each major activity and not to departments.
Unlike job order costing, process costing is a used by manufacturers who mass produce large quantities of the exact same âwidgetâ in one continuous process flow. How this differs from job order costing is that for process costing, the cost per unit is accumulated within a specific time period for a specific department. The formula is similar to job order costing.