What is Job Order Costing?

Activity Based Costing
Knowledge Center

 

Next Topic

Activity Based Costing > Forum > What is Job Order Costing?

What is Job Order Costing?
hiba, Jordan, Member
In cost accounting systems, what is job order costing? (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


  Job Order Costing
Jaap de Jonge, Editor, Netherlands
  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.

   
Special Interest Group Leader

Are you an expert in this field? Sign up for free


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


Activity Based Costing
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.5 - Last updated: 11-7-2020. All names of their owners.