ENTREPRENEURSHIP

Detailed explanation-1: -Setup costs refer to all of the costs associated with actually ordering the inventory, such as the costs of packaging, delivery, shipping, and handling.

Detailed explanation-2: -Ordering cost is a set overhead expense that doesn’t change throughout the year. Shipping fees, unforeseen transportation charges, inspection fees, and other costs associated with acquiring inventory items might all be included in these ordering expenses.

Detailed explanation-3: -Importance of job order costing It helps the company make estimates about the value of materials, labor, and overhead that will be spent while doing that particular job. Efficient job order costing helps companies to create quotes that are low enough to be competitive but still profitable for the company.