Job Order Cost Sheet

The video tutorial explains job order costing, a method to record costs for specific jobs. It details the components of a cost sheet, including job number, material units, and direct costs. The purpose of job order costing is to track costs and determine pricing, often using a cost-plus method. The tutorial also covers analyzing job profitability by comparing charged amounts to allocated activities.

What is the primary purpose of job order costing?

• To manage inventory levels

• To calculate employee salaries

• To estimate future job costs

• To record costs for specific jobs

Which of the following is NOT typically included on a cost sheet?

• Factory overhead allocation

• Job number

• Employee names

• Direct material costs

Why is it important to keep track of costs incurred in a job?

• To improve employee performance

• To ensure timely job completion

• To maintain quality standards

• To determine job profitability

What does 'cost plus billing' refer to?

• Charging a fixed price for a job

• Adding a margin to the job cost

• Billing based on time spent

• Reducing costs to increase profit

How can you determine if a job was profitable?

• By checking the job completion time

• By comparing costs to the budget

• By reviewing customer feedback

• By analyzing the allocated activities and charged amount