Advantages of Job Order Costing
- Various companies use job order costing for seeing and comparing which businesses are more profitable for utilisation and which jobs do not give any profit.
- A number of functional units and several factors related to operating efficiency can be decided by the management with its help.
- An organisation with the help of job order costing can plan and prepare a future production by using the information of similar job costing.
- Job order costing assists the management in taking productive steps by identifying and pinpointing any defects, depletion and spoilage in production orders and also helps them to reduce it to a minimum level.
- Every benefit of budgetary control can be gained by engaging in fixed expenditure rates in job costing.
Links of Previous Main Topic:-
- Introduction to accounting and branches of accounting
- Preparation of final accounts
- Introduction of fund flow statement
- Introduction cash flow statement
- Ratio analysis significance of ratio analysis
- Fixed assets and depreciation meaning causes objectives methods and basic factor
- Cost accounting concept objectives advantages limitations general principles and cost sheet
- Job costing
Links of Next Finance Topics:-
- Limitations of job order costing
- Batch costing
- Test questions in job costing
- Activity based costing introduction concept and classification
- Introduction inventory pricing and valuation
- Standard costing introduction
- Management accounting
- Marginal costing
- Relevant cost for decision making
- Budget and budgetary control
- Limitations of historical accounting
- Introduction to responsibility accounting