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posting #1
Why should an employee have some understanding of costing if they are not in the accounting
department?
When I worked for a lodging firm they would have us bill which properties we worked for down to the
second. I was always confused on why this was important until it was broken down for me. I worked for
over 60 hotels, not all at one time but when they were in need of my services. Sometimes it would be 12
hours a week, others may be as little as 30 minutes a week.

In the grand scheme what they paid me for
an as needed service was WAY cheaper than having someone doing the job on property who would be
getting paid for a full day of work regardless of how many hours they actually needed them. An
employee should know or have an idea on costing because it is important to have an understanding on
what and how much it takes to produce or deliver their services. It really helps to establish where that
employee fits in the big picture of the success of the company. It also motivated me to be more efficient
in trying to get work done at a lower cost in order to keep those hotels instead of them wanting to hire
an on property replacement.
Explain how the method of costing used will impact the company with: (A) the quoting of customer jobs
and (B) gross margin/profit on the Income statement.
It is crucial for a company to be as close to accurate as possible when making quotes to customers.
Every business has a mission and specific goals. Without proper budgeting, meeting those objectives
would be impossible (Picincu, 2018). In using the same example, I would quote to a hotel how me
working for them would be significantly less than them hiring an on site coordinator. If at any point my
team went over budget (barring unforeseen circumstances) that was a HUGE headache. What has to be
remembered is that when you tell a customer a budget they are also making adjustments on their end
to make it work. So going over means taking away from another department or source which can not
only be a huge inconvenience but just not feasible. Furthermore for the company, not being able to
meet set goals or prices can be costly to the organizations bottom line as well as their reputation

Posting #2
Why should an employee have some understanding of costing if they are not in the accounting
department?
Every employee in an organization can have a first hand affect on the costs associated with the business
being done. From the janitor to the CEO, having an understanding in what they can do to help drive
down costs is instrumental in remaining competitive. Every employee has heard the same words from
another stating this is a million or billion dollar company, we can afford it. While it is true that the
organization may not have an inherent issue with paying the bill, it does mean that those dollars cannot
be used for other purchases or proving financial profit to investors.
Explain how the method of costing used will impact the company with: (A) the quoting of customer
jobs and (B) gross margin/profit on the Income statement.
Costing methods change based on the applications they are being developed for. For instance, a
customer does not need to know the profit level a business is making on a particular job, they just need
to know they are getting a competitive price. The main 4 variations of costing include: job costing,
process costing, direct costing, and throughput costing (Bragg, 2018). Job costing and process costing
are typically used for official business reporting out for items like income statements, while direct
costing and throughput costing would go more towards a customer or value savings to a customer
(Bragg, 2018)

Given this information, the most likely type of costing for a customer job would be that of
direct costing, which factors in all levels of costs used to make a product or perform a service (Bragg,
2018). Being consistent in the ways that a company reports out or quotes the goods/services that they
produce is just as important as being competitive. Financials for the obvious reasoning of stakeholder
and government oversight as fines or distrust may occur, and for quoting interpreting purposes.