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.
Companies that produce goods and physical products need some sort of system to track costs and production levels. Process costing and job order costing are both viable methods for doing just that. Depending on the nature of the products and the amount of products created, one system may work better than the other. Job Order Costing Under job order costing, managers and workers track costs on a per-job basis. For example, an engineering firm that builds specialized computer motherboard may track the cost of the board on a per-job basis. Companies tend to use job order costing under the following conditions: 1  The products created are unique or customized.