Q-1 journal article answer

Job Costing

• Features of job costing

Job costing means the process of identifying the total cost incurred for completion of job according to the specifications and instructions of customers.

The job costing method falls under the category of specific order costing.

The products are produced only against customer's order and not for maintaining stock for sale.

The costs are accumulated to each job separately.

There is no continuous production.

• Two specific Australian companies that job costing system is suitable are as follows,

1. CPB Contractors
2. Fulton Hogan

Both are best construction companies in Australia. Job costing method is suitable for construction companies, because the cast are accumulated to each construction separately.

• Following are the potential uses of the cost information for decision-making

The cost information system plays an important role in every organization within the decision-making process.

1. It used to ensure the control over operations, processes, activity sectors, and not ultimately on costs.
2. The detailed analysis of costs, the calculation of production cost, the loss quantification, the estimating of work efficiency provides a solid basis for the financial control.

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Choose one peer reviewed journal article (from any country) on the: Using Job Costing system in a real-life organisation (i.e. a case-based empirical study). The article should be published between 2005 2020. Choose your article only after you have accessed and reviewed several relevant articles, and then choose the best article that will answer the questions below.

Questions:

1. Based on your chosen costing article, briefly summarise how the costing system was designed and implemented in your real-life organisation. (3 marks)
2. Based on your chosen costing article, did the costing system in the study satisfy the features discussed in Part A (Q1)? Why or why not? Include examples in your answer from your costing article. (5 marks)
3. Based on your chosen costing article, how useful was the cost information to the internal users in the organisation? Discuss with examples from your costing article. (5 marks)
4. Based on your literature findings, state two key lessons that would inform contemporary organisations about the practical use of your chosen costing system. (5 marks)

Additional Information:

1. You are encouraged to choose the journal article from the following Accounting and Management Accounting Journals:

Accounting, Auditing and Accountability Journal;

Journal of Management Accounting Research

Journal of Applied Management Accounting Research