Everything you need to know about Job Costing

26.09.2019
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What do you understand by Job Costing and why is it important?

Job costing is a must in today’s business environment. It is a simple method of recording the costs of a manufacturing job, rather than a process. With a system, a project manager or accountant can keep track of the cost of each job, maintaining data which is often more relevant to the operations of the business.

Still not clear about Job Costing?

Okay, let me be more precise;

Job costing is appropriate for deriving the cost of constructing a custom machine, designing a software program, constructing a building, or manufacturing a small batch of products. Job costing involves the following accounting activities:

For example, printing 5000 pamphlets, assembling 500 vehicles, delivering 4000 products and so on.

The elements within job costing procedure consist of direct costs, employment costs and material cost which comprises of prime costs and also overhead charges used for the departmental costs and shipping and handling costs which also includes costs taken for stocking and storage.

Job costing is used in which industries?

Due to the forward-thinking of every leading business leaders, it has been used in most of the industries like manufacturing, engineering, Aggregate and concrete industries. Whether its a large, medium or small entity job costing is a must in every industries/ business to maintain accuracy.

What’s the objective of Job Costing?

Let me take you through some advantages of Job costing!

Hold on Peeps! There’s a big list of advantages to taking you through:

There were too many advantages right? Now it’s your duty to think about why job costing is a must in your firm. Also, if you don’t have job costing in your business, you should now have one!

Herbst Software is known for providing the best solutions to various industries. Having more than 30 years of experience in the ERP market we are also known to create solutions as and when the company encounters a new problem. Our job costing has been used by many known companies and has made their accounting and management process simple.

We believe in making business simple and creating solutions for all your problems! 🙂

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