Job Cost System
If your business produces goods and services for customers based on their specifications then a job cost tracking system will be needed to allocate costs such as direct materials, direct labor, and applied overhead to each job.
Job costs are accumulated on a job sheet, based on information supplied from material requisitions, and daily time sheets. Applied overhead is allocated to the job on a predetermined basis (such as labor hours) and rate.
The total cost of the job from the job costing record is used, with an appropriate mark up, to generate customer invoices
For further information on job costing see see the Wikipedia definition.
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