Speaker 1: What is job order costing with regard to departmental or department cost allocation? Well, to start with, job order costing attributes cost to a particular job rather than an entire production department. That is, all of the costs that are incurred in doing the job, and this includes direct costs, materials and labor, but also indirect costs like the allocation of overhead. All of that is caught within the job, okay, and accounted for therein. Now, with that being said, if you are going to account for department costs, right, this is done through process costing. In process costing, your costs are attributed to a particular production process or a department, okay? Now, with that being said, how does it work? Well, the costs are recorded as they occurred. And then, you know, at the end of the process, you can determine what the cost on a per unit basis is after all production is completed based upon the number of items produced. So, you take the total cost, divide it by the number of items, and there you go. That's your per unit basis. Now, one way you can allocate these costs to a department under a job order costing system is to record collections. Collectively, all the jobs that are carried out by a particular department, and then attribute those jobs collectively to the department. This is what you would do if the department itself had its own P&L or income statement where you were keeping track of the profitability of that department. Say it's a responsibility center where it's charged again with its own P&L. That would be the approach to job order costing with departmental or departmental. So, that's the end of the department cost allocation.