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.
Thus, a job order cost system can be used by managers for cost evaluation and control. Possible reasons that actual material costs would exceed expected cost include: poorly trained employees, poor quality materials, faulty equipment or incorrect instructions. 160. Discuss the use of job order costing for professional services businesses. What are the similarities and differences between service and manufacturing business job order costing? This is the end of the preview. Sign up to access the rest of the document.