Job Costing
About Job Costing
Job
costing is a costing method used to determine the cost of specific
jobs, which are performed according to the customer’s specifications. It
is a basic costing method which is applicable where work consists of
separate projects or contract jobs.
Job costing, also called
project-based accounting is the process of tracking costs and revenue
for each individual project. Job costing looks at each project in
detail, breaking down the costs of labour, materials and overhead. It
makes fewer assumptions than other costing methods.
Why is Job Costing important?
Advantages of job costing
• Profitability for each job can be individually determined
• Provides a detailed cost analysis of materials, labour and overheads for each job as and when required
• The efficiency of the plant can be controlled by confining attention to costs relating to individual jobs.
• Helps in preparation of estimates
• Comparison of actual cost with estimated cost and calculation of variances.
• Helps in identifying unprofitable jobs
• Helps in providing a precise quotation for a product
Who should take the Job Costing Exam?
• Finance or costing professionals
• Business owners
• Entrepreneurs
• Innovators
• Anyone who wants to assess their job costing skills
• Finance or costing managers and senior executives
• Job costing consultants
• Professionals working in outsourced companies responsible for costing
• Any professional with skills and knowledge on job costing
• Anyone interested in job costing
• Students
Job Costing Certification Course Outline
1. Material Cost
2. Labour Cost
3. Direct Expenses and Overheads
4. Job Costing