Question

Using the GCU Library, locate a journal article about job-costing systems or how managerial accounting helps businesses make decisions. In the subject line of your post, include the name of the article that you read. Post a link to that article with your initial post, and provide a summary and a reaction to the article. The summary should be approximately 250 words, and the reaction should be approximately 150 words. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply that knowledge. Do not choose an article that one of your classmates has already posted. To participate in follow-up discussion, choose one of the articles that a classmate has posted and provide your own reaction to it. Note: It may be challenging to find a relevant article if you do not use the library.

Answer 1

Job Costing: Meaning, Advantages, and Disadvantages.

SUMMARY

Job costing is a part of the cost accounting system used in sectors where manufacturing Printing Press is the sector in which work costs are usually enforced. Vehicle workshop, repair facilities, shipyards, manufacturing plant as well as other related production units that deliver to the unique specifications of customers.
Job costing is a costing system whereby the cost of a job or work order is recorded. The output is against the orders of the client and not for inventory. The cost is not connected to the manufacturing unit, it is an expenditure for the work, e.g. printing of 50 ledger papers, fixing 10 machines, rather than printing one sheet or repairing one machine.
Costs which include Prime Cost that is Direct supplies, direct labor, and direct expenditure shall be paid directly to the jobs and the overhead paid to the work shall be the allocated portion of the overhead.

The overall Costs of direct supplies related to a job are collected from records of purchase orders cost by the Accounting Department of the Shops. Direct wage expenses are actually collected from a separate period that the Payroll Department has priced. Direct expenses are also collected.
At fixed departmental absorption rates, output overheads are then applied and reported in the cost-sheet. Different overheads can be reported in the separate columns designated for this in the cost sheet and are summed up in order to obtain the overall cost of raw material, direct labor, direct expenses, and the overheads of allocated output.

REACTION

Very unique types of businesses use a job order cost accounting system. These firms do not import and store common goods to sell to consumers. They're taking orders instead. This suggests that the model is tailor-designed according to the customer's specifications. This makes it difficult to order work, as production can be identified in advance and overheads can be distributed across goods in a business that produces regular goods. However, in the case of work order prices, it is highly arbitrary and vulnerable to mistakes to decide what the overheads will be for the next accounting cycle.
Managerial accounting seems to be very useful in highly competitive and fast-paced market environments where you need to make quick decisions. Such options can have to do with a marketing strategy, budget management, or working capital control. Management accounting could use organizational information to easily understand what is happening. The objective would be to use the budget to help make short operational decisions that will help improve the operational performance of the organization.

Link of the article:
https://www.managementstudyguide.com/job-order-costing.htm