Sherwin Williams

Definition

Sherwin-Williams is a large American company in the paint and coating manufacturing industry. It produces a variety of products for both commercial and residential use, often requiring detailed cost accounting methods to manage production expenses effectively.

5 Must Know Facts For Your Next Test

1. Sherwin-Williams uses job order costing for custom paint orders and specialized projects.
2. Each job at Sherwin-Williams can have unique costs assigned to it, such as labor, materials, and overhead.
3. Job order costing helps Sherwin-Williams track the profitability of individual customer orders.
4. In job order costing, Sherwin-Williams assigns manufacturing costs directly to specific jobs rather than averaging them across all products.
5. Sherwin-Williams benefits from job order costing by obtaining detailed financial insights needed for pricing strategies and cost control.

Review Questions

• How does Sherwin-Williams utilize job order costing in its operations?
• What are the key components of cost that Sherwin-Williams assigns to individual jobs?
• Why is job order costing beneficial for a company like Sherwin-Williams?

Related terms

Job Order Costing:

A method where costs are assigned to specific jobs or batches, suitable for customized orders.

Process Costing:

A method where costs are averaged over continuous production processes, suitable for large-scale production.

Overhead Allocation:

The process of distributing indirect costs across different jobs or departments based on a predetermined rate.