Job Costing

Equipment maintainability is liable to change with change in technology, personnel skill and environment. Therefore, the cost of using such equipment for production activities will be affected depending on the level of skill of the maintenance personnel and technology involved. Hence, maintainability of production facility has a role to play in arriving at a realistic cost of operating it. However, activity-based costing that has been widely used for job costing has failed to include maintainability cost into the job costing procedure. The study developed an activity-based job costing model on lathe with the inclusion of maintainability scenario. First, activity-based costing method was used in estimating costs of job handling, machining, cutting tool, and material. Second, maintainability of the lathe machine was assessed based on its conceptual and hierarchical configuration. The lathe’s components’ maintenance accessibility at a

Radio frequency identification (RFID) technology has been used to collect information for use in information systems that support knowledge-based business decisions. Most applications involve using the technology for automatic identification and tracking within facilities and supply chains. However, there are a number of other uses for the technology in the context of supporting knowledge-based decisions. By describing an innovative use of RFID technology, this study contributes to research and practice in the area of knowledge-based tools. Specifically, the process created in this study uses RFID technology to automatically and accurately calculate job costing information for fixed-position projects. By implementing the methods described in this process, business professionals can reap important benefits from the knowledge generated by the system.

This paper describes the development of a site data acquisition and job costing model for a medium-sized industrial and commercial building contractor. The model, based on activity-based job costing, provides a simple yet effective method of collecting information from the field, analyzing it, and providing feedback to project personnel. It identifies the type of data that should be collected and the appropriate level of detail at which to collect data. Data acquisition and job costing reports based on this model are presented. Finally, implementation of the model is discussed.

Using job cost data from a leading printing company in Taiwan, this study empirically examines product pricing behavior both before and after a change in the job order costing system. As direct material costs are billed separately, and labor costs are fixed, only a negligible proportion of the job costs is variable at this company. A key finding is that allocated fixed job costs are significant in explaining variations in short run prices even after controlling for job volume and quality requirements. The results also indicate that pricing behavior changed following the change in the job costing system. After the change, prices depend more on the full costs calculated based on the new system than on the full costs based on the old system, although neither cost estimate was reported to marketing managers when bidding for jobs.

Radio frequency identification (RFID) technology has been used to collect information for use in information systems that support knowledge-based business decisions. Most applications involve using the technology for automatic identification and tracking within facilities and supply chains. However, there are a number of other uses for the technology in the context of supporting knowledge-based decisions. By describing an innovative use of RFID technology, this study contributes to research and practice in the area of knowledge-based tools. Specifically, the process created in this study uses RFID technology to automatically and accurately calculate job costing information for fixed-position projects. By implementing the methods described in this process, business professionals can reap important benefits from the knowledge generated by the system. Use of RFID Technology for Automatic Job Costing

2.3.2015 Number of pages and appendix pages 29 + 8 This thesis is a product-oriented work commissioned by a small company operating in the glass construction industry in the Helsinki area. The outcome of this thesis is a job costing tool and instructions on how to use it. This tool helps the case company in cost estimation and pricing decisions. The theory cover from a managerial accounting point of view, job costing for a service company, job costing record and pricing strategy. After an overview of literature, a job costing record tool and a user's guide is designed for the company according to the company's financial information. The tool is tested with the case company's past projects after which the tool is presented to the company and feedback on the project and its outcome is received from the commissioning company. The method used in this thesis is qualitative. The information is gathered by interviewing the company managers and by studying the case company's financial information and estimations for future operations.

Although job costing is an essential element of any contracting business, it is task that is often neglected by many pavement maintenance companies. This failure to cost jobs correctly probably causes many paving and pavement maintenance contractors to leave the business within a year or two due to either underbidding (which reduces their profits) or overbidding (which causes them to lose out on jobs). This article discusses some of the considerations of effective job costing from the perspective of a successful paving contractor. Job costing is a very detailed process, and several cost elements need to be considered, including overhead, crew rates, mark-up, and profit vs. salary. A computer-based software program can be useful in helping contractors job cost accurately.

The construction industry in New Zealand is very large and shows no signs of slowing down in the near future. It is one of the largest contributors for employment growth. However, some of the largest construction companies are seeing huge losses and debts. This report sets out to find out why this is happening and will do so by analysing job costing methods and investigating variances of quoted and actual costs in the construction/painting industry. Many Potential Job Costing methods have been identified, but the best-suited options were the profit point analysis and micro costing methods. Another potential method to improve quoting would be to use a structured project learning approach. However, the answer may not lie within job costing but with the fact that material and labour prices are increasing yearly and will be different when jobs are quoted from when they are carried out. A survey was sent via email to 85 construction businesses. 10 viable responses were gathered back. A financial analysis was also carried out on 45 jobs gathered from a painting business known to the researcher. The financial analysis found there was an average variance of 5 %, with labour contributing 69% of this. When looking at jobs under $5000 it was found the average variance was 19%, while jobs over $5000 averaged 1% variance. The survey results found that average estimated variance for labour was 6% and materials were 1%. The researcher recommends using a structured learning approach. It is essential that construction businesses are aware of increasing material and labour costs. It is also evident that smaller jobs saw larger variances, therefore smaller jobs should be quoted as accurately as larger jobs.

Pure job costing information couldn’t make businesses gain a long-run competitive advantage and profit-making capabilities because of ignorance of capital costs in present fury competitive market environment.For solving inherent limitation of job costing, it’s necessary to combine job costing with economic value added costing.

PT. X is a company that engages in the aluminium cargo box assembly. This company assembles and manufactures aluminium cargo box depends on customer’s orders. Inventory, use of raw materials, and cost of goods manufactured are recorded manually. When it comes to determining the cost of goods manufactured, the owner calculates based on the cost of raw materials only, the owner did not pay enough attention to the labour cost and overhead cost. An accurate calculation of cost of goods manufactured is essential since it helps the company to make sure that the determined sales price can cover all the cost incurred. Manual recording could slow down the performance and increase the possibility of inaccurate calculation of cost of goods manufactured. Based on the case, an application to do the calculation of cost of goods manufactured is designed. The process of designing application has gone through several stages, starting from doing survey on the production system, data analyzing, designing Data Flow Diagram and Entity Relationship Diagram of the application. The application uses Microsoft Visual Studio .Net 2005 as its programming language and Microsoft SQL Server 2005 as its database. The calculation of cost of goods manufactured is using Job Costing method. Results that obtained from the application that have been made are raw material usage that can be saved based on Bill of Material or additional in the real process, labour usage, and so on associated with the production process. In addition, the application that has been made can be used to allocate the cost that occurs during the production process and to generate reports related to the calculation of Cost of Goods Manufactured of a product automatically.