Job Order Costing

To begin, select one of the following types of businesses:

• Custom furniture maker
• Window repair shop
• Law firm
• Landscape company
• Theater show production

Describe how your chosen business might use Job Order Costing to account for its product(s) or service(s): What direct and indirect product costs would the company incur? List at least five costs. Are these costs variable or fixed? What typical period costs would you expect your chosen type of business to incur? List at least three period costs. What overhead allocation base would you suggest for the company to use? Explain your reasoning.

For your responses, focus on the following questions: Do you agree with your classmates' responses concerning the direct, indirect, and period costs identified for their chosen business? Explain. Would you suggest the same or a different overhead allocation base for their chosen business? Elaborate on your response comparing and contrasting their allocation base suggestion versus your allocation base suggestion. Support your responses to classmates with additional research and/or examples of your understanding of cost classification concepts and Job Order Costing systems.

Be sure to post at least one reference in support of your explanations and conclusions.