Respuesta :
The cost object in a job costing order system is the specific job assigned and the cost object in a process job costing system is the process itself.
What is Job Costing?
- Accounting that tracks costs and receipts by "job" and facilitates uniform reporting of profitability by work is known as "job costing."
- An accounting system must enable the assignment of job numbers to specific expenditures and revenue items in order to support job costing. A job can be described as a specific project completed for a single client, a single manufactured product, or a batch of identical pieces created simultaneously.
- It is necessary to keep track of which "job" uses which direct costs, such as direct labor and direct materials, before allocating overhead costs, such as indirect labor, warranty costs, quality control costs, and other overhead costs, to the jobs in order to apply job costing in a manufacturing setting. A job profitability report is similar to the company's general profit and loss statement, but it is tailored to each individual job number.
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