Advantages Of Job Order Costing* Job order costing offers a detailed analysis of the costs of materials, labor cost and overheads by functions and nature.* Job order costing makes it possible to appraise the profitability of a job.* Job order costing facilitates the estimation of the cost of a similar job.* Job order costing allocates overheads on the basis of a predetermined rate.* Job order costing makes easy to identify spoilage and defects to take corrective actions.* Job order costing evaluates efficiency of different types of jobs with cost...
Wednesday, 13 October 2010
Concept And Meaning Of Job Order Costing
Posted on 01:09 by Unknown
A manufacturing firm generally produces goods based on demand forecasting. However,it sometimes produces them also on receipt of order from its customers. Goods produced and works done as per customers' order are called job. Therefore, the costing method designed to determine the cost of a job is very essential. Job order costing is the costing system that determines the cost of the jobs received from the client.. Thus, job order costing system estimates the costs of manufacturing products as per customers' orders.Individual job need different...
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