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Unformatted text preview: Applying Job Costing, Potter’s Painting Page 1 Applying Job Costing, Potter’s Painting Techniques Melissa Potter Rasmussen College, School of Business August 6, 2011 Applying Job Costing, Potter’s Painting Page 2 Job costing is matching the costs that are incurred in performing the job to the revenues that the job creates. These processes of matching expenses to revenues are used in manufacturing, merchandising, and service related industries. The key component with job costing is configure the indirect costs to match to the job by using a measurement like hours spent to perform the job, etc. Potter’s Painting Techniques is a business that provides painting services to residential and commercial customers. Melissa Potter had previously determined prices for services based on the size of rooms painted and added a set amount fee to the jobs if a painting technique was ordered. By the end of the first month, she realized that she undercharged for services on some of the larger jobs and felt that the charges she gave the customers for smaller jobs may have been...
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This note was uploaded on 08/15/2011 for the course ACCT 400 taught by Professor Reif during the Spring '11 term at Rasmussen College.
- Spring '11