6-6 Job Order Cost Wrap Up Lecture Notes.doc - Job Order Costing Wrap-Up Lecture Notes Hello and welcome to lecture wrapping up job order costing This

6-6 Job Order Cost Wrap Up Lecture Notes.doc - Job Order...

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Job Order Costing Wrap-Up Lecture Notes Hello and welcome to lecture wrapping up job order costing. This lecture will discuss the advantages and disadvantages of job order costing and we will talk about reporting job cost data, including under– or overapplied manufacturing overhead. Advantages of job order costing Some of the advantages of job order costing are: Job order costing is more precise in its assignment of cost products. It also provides more information to determine the profitability of a particular product as companies can tailor their costs to the specific jobs completed. This allows companies to provide more useful information for estimating the cost of future jobs as they are better able to capture their costs on completed jobs. Disadvantages of job order costing There are also disadvantages of job order costing. Job order costing requires a significant amount of data entry which in turn requires time and money to pay employees to keep track of this information. Additionally if the data is not entered accurately the product costs are not
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  • Fall '09
  • Frank manufacturing

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