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What is Job Order Costing?
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hiba
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What is Job Order Costing?

In cost accounting systems, what is job order costing?

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  Jaap de Jonge
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Jaap de Jonge
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Job Order Costing

Also referred to as 'Job Costing', job order costing is a method for assigning manufacturing costs to an individual product or batch of a product. The job order costing system is used typically when the products being manufactured are significantly different from each other.
The job order costing system creates a job cost record for each item, job or special order. The job cost record will report the direct materials and direct labor that have been used plus the manufacturing overhead assigned to that particular job.
Typical industries in which job order costing is used are make-to-order or engineer-to-order industries, such as building construction, engineering (ships, oil platforms) and custom equipment manufacturers.
When products are nearly identical or fully identical, the Process Costing system is more likely be used.

 

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Special Interest Group


More on Activity Based Costing
Summary Discussion Topics
topic Limitations and Advantages of ABC for Budgeting
topic Limitations ABC monitoring operations
topic ABC in an Advertising Firm?
topic The Cost of Non-value-added Activities
topic ABC: reduce non value adding activities?
topic Consequences of ABC Analysis
topic Capacity Minutes and Industry Norms
topic Drivers still Right?
topic ABC Helps Companies Survive Recession
topic Traditional Costing versus Activity Based Costing
topic The Process of Activity Based Costing (ABC) simplified
topic Activity Based Costing (ABC)
topic Conditional Resources in ABC
topic ABC in service companies such as airlines?
topic Overhead Costing - Food Manufacturing
topic Degree of Detail in ABC
topic Activity Based Costing Implementation
topic ABC and Decision making
topic Time-driven ABC (TDABC)
topic Activity Based Management (ABM)
topic Calculating the Most Profitable Way of Manufacturing a Product
topic ABC or TOC? The Differences between Activity Based Costing and the Theory of Constraints
topic Recommended ABC Software
topic Comparison Activity Based Costing, Time-Driven-ABC and Lean Accounting
topic ABC Costing in Make to Order of Repetive Manufacturing
topic Organizational Issues when Introducing ABC
topic Over Recovery / Under Recovery Level
🔥 What is Process Costing?
topic ABC in the Federal Environment
topic An ABC Initiative is Only as Effective as the Software That Supports It
👀What is Job Order Costing?
topic How to Derive Overhead Cost from a P&L?
Special Interest Group
Knowledge Center

Activity Based Costing


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