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What is Job Order Costing in Accounting about?

1. Job-order costing allocates costs to unique products or services by treating each as a separate cost center. Overhead is applied to jobs using a predetermined overhead rate based on normal capacity. 2. At year-end, overhead may be overapplied or underapplied depending on actual activity and costs compared to estimates. Significant under- or overapplied overhead requires an adjustment to work in process, finished goods, and cost of goods sold. 3. Spoilage may be normal, from general production conditi

Author

Penelope Urot

Language

EN