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.
As you notice, both systems measure costs by finding the sum of the cost of material, cost of labor and allocated overhead. The difference is that job order costing ignores the time variable and measures costs accrued by a particular job order.