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.