Question

In: Accounting

Name one or more manufacturing companies that utilize job costing. Post a brief summary.

Name one or more manufacturing companies that utilize job costing. Post a brief summary.

Solutions

Expert Solution

Manufacturing companies that use Job Costing are as follows.

1. Boeing (Airplanes)

Boeing is a world famous manufacturer of aircrafts and aircraft equipments. Since the intricacies involved are different in the manufacture of one aircraft from the other, each aircraft, project or part thereof is treated as a seperate job, with different and seperate allocations for Materials, labour and overheads and other expenses.

2. Ferrari (Luxury Vehicles)

Although the automobile industry does not use job costing, luxury car manufacturers, due to the amount of customisations and uniqueness that they can bestow upon the vehicles, each vehicle requires a different amount of labour, different materials, even different kinds of paint mixed in different ways.

So according to each customer's requirements, a job sheet is prepared, and unlike normal cars that come with a retail price + options, luxury cars are priced based on the job sheet prepared.


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