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Job costing (known by some as job order costing, a subset of which is project accounting) 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. The distinction between job costing and process costing hinges on the nature of the product and, therefore ...
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.
In order to conduct the cost breakdown analysis, the starting point is to examine the various cost drivers of the service or product that is being analyzed. When itemizing the costs of transportation, one can come up with a simplified list of six cost drivers, namely: Personnel (e.g. driver) Motor fuel (diesel / gasoline) Tires; Maintenance; Tolls
Activity-based costing also de-emphasizes direct labor as a cost driver and concentrates instead on activities that drive costs, as the provision of a service or the production of a product component. Other approach is the German Grenzplankostenrechnung (GPK) costing methodology.
The value of work done (VOWD) is a project management technique for measuring and estimating the project cost at a point in time. It is mainly used in project environments of the Petroleum industry and is defined as the value of goods and services progressed, regardless of whether or not they have been paid for or received.
Job production is, in essence, manufacturing on a contract basis, and thus it forms a subset of the larger field of contract manufacturing. But the latter field also includes, in addition to jobbing, a higher level of outsourcing in which a product-line-owning company entrusts its entire production to a contractor, rather than just outsourcing ...
Order method of cost-finding : When the order is the tangible basis upon which the elements of cost are charged, compiled, and determined, the order method of cost-finding is generally used. In other words, under such conditions the material costs, labor costs, and a pro rata share of the factory overhead are all charged to definite factory ...