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Old Tuesday, May 31, 2011
Mohsin Mushtaq's Avatar
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AOA,
I need notes of Primary objective in job order costing. Thanks in anticipation.
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Old Tuesday, May 31, 2011
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The primary objective in job order costing is to determine the cost of:
  • Materials,
  • Labor, and
  • Factory overhead

This cost, as determined above, subsequently used to produce a specific order or contract. Cost estimates are made when the order is taken, and the job order procedures are designed to reveal costs as the order goes through production, thereby giving an opportunity to control costs.
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