Skip to Main Content
Accounting All-in-One For Dummies, with Online Practice, 2nd Edition
book

Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

by Joseph Kraynak
April 2018
Beginner content levelBeginner
768 pages
20h 9m
English
For Dummies
Content preview from Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

Chapter 1

Estimating Costs with Job Costing

IN THIS CHAPTER

check Going over how job costing works

check Identifying cost objects

check Using job costs to price a product or service

check Reviewing the flow of costs through a manufacturing system

Job costing is a methodology you use when the costs to manufacture a product or provide a service vary according to each customer’s unique needs. Job costing allows you to provide detailed price estimates based on the product or service provided. A roofing business, for example, uses job costing, because the cost varies according to the customer’s needs. The amount of material depends on the type of roof and the square footage. Labor time varies, depending on the roof’s size, pitch, and unique angles.

A cost object is the product, activity, or process that causes your company to incur costs. In this chapter, you see how to assign costs to the cost object. You also find out how to follow the flow of manufacturing costs as a product moves through the production process.

Understanding How Job Costing Works

For some businesses, nearly every customer job has different ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Accounting All-in-One For Dummies

Accounting All-in-One For Dummies

Ken Boyd, Lita Epstein, Mark P. Holtzman, Frimette Kass-shraibman, Maire Loughran, Vijay S. Sampath, John A. Tracy, Tage C. Tracy, Jill Gilbert Welytok

Publisher Resources

ISBN: 9781119453895Purchase book