Titleist

Definition

Titleist is a brand known for manufacturing golf equipment, including golf balls and clubs. In a managerial accounting context, it can serve as an example of a company that might use job order costing to track production costs for custom orders or specific product lines.

5 Must Know Facts For Your Next Test

1. Titleist may use job order costing to manage the costs associated with producing custom golf equipment.
2. Each batch or order of Titleist products can be considered a 'job' with its own set of cost records.
3. Direct materials, direct labor, and manufacturing overhead are tracked separately for each job.
4. Job order costing helps Titleist determine the profitability of specific product lines or customer orders.
5. Cost data collected from job order costing can be used to inform pricing strategies and budget forecasts.

Review Questions

• How does Titleist benefit from using job order costing in its production process?
• What types of costs are tracked separately under Job Order Costing for a company like Titleist?
• Why is it important for Titleist to determine the profitability of each job?

Related terms

Job Order Costing: A costing method where costs are assigned to specific jobs or batches which are unique and customized.

Process Costing: A costing method where costs are averaged over large numbers of identical products.

Direct Materials: Raw materials that can be directly traced to specific jobs or products.