What you’ll learn to do: Examine the job order cost accounting system
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Job order costing is used when many different products with different features are produced during a particular period. This process allows companies to allocate all of the costs incurred in a business, whether direct or indirect to jobs. We will discuss service and manufactured jobs, and follow a couple jobs from the beginning to end.
We will discuss the meaning of absorption costing, and how it helps businesses to see a clearer picture when figuring out prices for the products or services they offer.