Question

Answer the following:

• What kinds of companies do you envision using job costing?
• The book gives us several examples of industries that might use job costing. Pick an industry listed and select two companies from that industry.
• Go to their website and find out a little about their products.
• Discuss what types of raw materials, direct labor, and overhead you see them accounting for.

Answer 1

Guidance for writing answer:

Companies that one can envision while using job costing includes - construction companies, retail companies, consulting and law firms, house designers etc. Companies are Deloitte & Touche, Boeing etc.

(Since we have no idea about examples book has) Here are some examples of companies and their indistry that uses job costing are aviation industry, consulting law and public accounting firms and two companies from this indiustry are "Boeing" And "Deloitte and Touche".

Deloitte and Touche is an accounting firm and uses job costing for its clients while Boeing is aircraft manufacturers and uses job costing to allocate cost to each product.

For "Boeing" raw material includes purchased parts and labor includes engineering while overhead includes other costs of electricity, selling costs etc

For "deloitte and touche" raw material includes accounting software and laptops and labor includes professionals and employees appointed while overhaeds include electricity, stationery, other equipments, rent etc.

Hope this helps:)