Skip to content

CA Intermediate · Cost and Management Accounting · Job Costing

In a job costing system, which document is normally used to accumulate the materials, labour and overheads charged to a particular job and serves as the basis for determining the cost of that job?

The job cost sheet is the document that accumulates materials, labour, direct expenses and absorbed overheads for each job. It is opened when the job is started and gives the total cost of the job, unlike a bin card, which only tracks stock quantities.

  1. AJob cost sheetCorrect
  2. BBin card
  3. CMaterial requisition note of the store only
  4. DBank reconciliation statement

Explanation

A job cost sheet is opened for each job and records direct materials, direct labour, direct expenses and absorbed overheads. Bin card records only stock quantities of a material, and a requisition note supports one issue of material. A bank reconciliation statement is unrelated to job cost.

Did you get it right without looking?

One question tells you little. A timed set on Job Costing shows your real accuracy, how long you take and where you lose marks.

Practise Job CostingFree diagnostic mock

More Job Costing questions