Dictionary of Accounting Terms: manufacturing and production system
manufacturing and production system
plan that either creates goods or provides services (or both). Manufacturing and production systems produce output that ranges from highly standardized to highly customized. Depending on the type of system used, an appropriate cost accounting system can be designed. For example, a job ordercosting system is used by custom manufacturers such as shipbuilders, aircraft manufacturers, and printers, while a processcosting system is used by processing industries such as refineries and chemical manufacturers.
