Job Order Costing

Accounting Terms Dictionary

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Job Order Costing

Adding up the materials, labor, and overhead for an order. In order to figure up your profit, you have to know what the job cost.

If the labor was $20, the materials $5, and the overhead $10, the job cost $35 (20 + 5+10). The company would have to charge more than $35 to make a profit.

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