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Job costing (known by some as job order costing) is fundamental to managerial accounting. It differs from Process costing in that the flow of costs is tracked by job or batch instead of by process. job cost is done for one single product The distinction between job costing and process costing hinges on the nature of the product and, therefore, on the type of production process:
Contractors may use a single job work order and invoice form that contains the customer information, describes the work performed, lists charges for material and labor, and can be given to the customer as an invoice. [8] A job order is an internal document extensively used by projects-based, manufacturing, building and fabrication businesses.
Standard Costing is a technique of Cost Accounting to compare the actual costs with standard costs (that are pre-defined) with the help of Variance Analysis. It is used to understand the variations of product costs in manufacturing. [6] Standard costing allocates fixed costs incurred in an accounting period to the goods produced during that period.
Cost engineering is "the engineering practice devoted to the management of project cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis". [1] "
Understanding these costs is the first step in being able to control them. It is very important that a company chooses the appropriate type of costing system for their product type and industry. One type of costing system that is used in certain industries is process costing that varies from other types of costing (such as job costing) in some ...
Direct costs, in accounting, are costs directly accountable to a cost object (such as a particular project, facility, function, or product). [1] The equivalent nomenclature in economics is specific cost. [2]
A cost object is a term used primarily in cost accounting to describe something to which costs are assigned. [1] Common examples of cost objects are product lines, geographic territories, customers, departments or anything else for which management would like to quantify cost.
Typical examples include job scheduling in manufacturing and data delivery scheduling in data processing networks. [1] In manufacturing environment, inventory management considers both tardiness and earliness undesirable. Tardiness involves backlog issues such as customer compensation for delays and loss of goodwill.