Job Costing - What is an example of job costing?

Q: What is an example of job costing?

Who uses job costing? Examples include home builders who design specific houses for each customer and accumulate the costs separately for each job, and caterers who accumulate the costs of each banquet separately. Consulting, law, and public accounting firms use job costing to measure the costs of serving each client.

Answer

Jobs are costed by whom? Home builders, for instance, create unique floor plans for each client and track the associated expenses for each project independently; similarly, caterers track the associated expenses for each banquet in its own unique way. To determine how much it costs to serve each customer, consulting, legal, and public accounting organizations employ job costing.

Job Costing - What is an example of job costing?

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