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What is job order costing - Accounting for Management

Examples of manufacturing businesses that use job order costing system include clothing factories, food companies, air craft manufacturing companies etc. Examples of service businesses that use job order costing system include movie producers, accounting firms, law firms, hospitals etc.…

Job Order Costing in Service Companies

Job Order Costing in Service Companies Job order costing is also used in service organizations such as law firms, movie studios, hospitals, and repair shops, as well as manufacturing companies. In a law firm, for example, each client represents a “job,” and the costs of that job are accumulated day by day on a job cost sheet as the client’s case is handled by the firm.…

How Job Costing Works in Cost Accounting - dummies

You need a job costing estimate in order to get the customer’s business, and you need to track costs accurately so you generate a reasonable profit. The different costs for different jobs will often be self-evident. Material costs, labor hours, mileage cost, and type of equipment used are likely to vary. For example, a tree trimming company would incur more costs to remove a 30-foot tree than to remove ……