Job order costing is used to determine the cost of producing each job or job lot.

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Job order costing is a system used to determine the cost of producing each job or job lot by assigning direct and indirect costs to each individual job based on its unique characteristics and requirements. This approach is commonly used in industries such as construction, manufacturing, and printing, where each project or order is distinct and requires specific materials, labor, and overhead. The final cost of each job can then be compared to its selling price to determine profitability and inform pricing decisions for future orders.

Job Order Costing Is Used to Determine the Cost of Producing