BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Basic job costing consists of the sum of direct labor, material, and overhead for each job. Direct labor is the cost required to employ team members and staff needed for handling production tasks. Indirect labor such as administrative staff salaries are part of the manufacturing overhead.

Detailed explanation-2: -Job costing is an accounting method designed to help you track the cost of individual projects and jobs. It involves looking at direct and indirect costs, and it’s usually broken into three specific categories: labor, materials and overhead.

Detailed explanation-3: -Job order costing requires the assignment of direct materials, direct labor, and overhead to each production unit.

Detailed explanation-4: -Job costing is used to accumulate costs at a small-unit level. For example, job costing is appropriate for deriving the cost of constructing a custom machine, designing a software program, constructing a building, or manufacturing a small batch of products.

Detailed explanation-5: -Job costing is used when a business entity carries out tasks or jobs to meet specific customer orders. Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.