Question

You are required to come up with a business that is fit to apply JOB Costing on. That is each product/service/project is unique than the other in its using resources, labor, and other indirect manufacturing costs.

1. You have to give a name for your business.

2. You have to explain the products or services or projects that you provide for your customers.

3. Write the Mission Statement and Vision of your firm .

4. Come up with at least three strategic and operational objectives.

5. Come up with your Cost Pools and identify appropriate allocation base(s).

6. Give 1 example of one of your products/services/project and apply Job Costing to it. That is, you have to identify how much Direct Material, Direct Labor; and Manufacturing Overhead cost is incurred.

7. Come up with your example’s (6) price to be sold to your customers.

8. Prepare 3-year Forecasted/Budgeted Income Statements, explaining the logic behind your numbers with respect to revenues and expenses as well as interest and tax.

Answer 1

Job costing is better for industries like printing, car repairs,painting and decorations etc.

A. Name of the enterprise can be :-

Elementary car repairing services

B. The services provided by the enterprise are:-

1. Car repairing

2. Automobile repairi

3. Car painting

4. Car cleaning service

5. Engine repair,etc.

C. Vision statement-

The elementary enterprise is here to become the world's leading enterprise to provide premium service to its customers.

Mission statement:-

To be relevant, and profitable in the future.

D. Operational Objectives can be:-

1. To optimize the customers satisfaction by providing them quality service.

2. To make the best possible use of funds and minimization of wastages.

3. To satisfy its employees by indulding them in the decision making process.

Strategic objectives can be:-

4. To get an edge over competitors by providing better services than them.

5 To make growth and survival a vision of the organization.

6. To capture the maximum market share.