This product or service is called a deliverable. Where appropriate, you can record information about the deliverables in your project. Tip: This article is part of a series of articles within the Project Map that describe a broad set of project management activities.
Kâs Premier Cabinets uses job costing to calculate the cost of jobs as they are completed. The company estimates that it will have $1,250,000 in overhead costs in 2015. The company believes that employees will work 200,000 hours and that 150,000 machine hours will be used during 2015.
Unlike job order costing, process costing is a used by manufacturers who mass produce large quantities of the exact same âwidgetâ in one continuous process flow. How this differs from job order costing is that for process costing, the cost per unit is accumulated within a specific time period for a specific department. The formula is similar to job order costing.