Skip to content

CA Intermediate · Cost and Management Accounting · Job Costing

In a job costing system, which document is used to accumulate the materials, labour and overheads charged to one specific customer order and is the basis for computing that job's total cost?

The job cost sheet is the document that accumulates direct materials, direct labour, direct expenses and absorbed overheads for a specific job. It gives the total cost of that job, unlike a bill of materials or goods received note, which serve other purposes.

  1. AJob cost sheetCorrect
  2. BBill of materials
  3. CGoods received note
  4. DMaterial requisition summary for the whole factory

Explanation

A job cost sheet is opened for each job and records direct materials, direct labour, direct expenses and absorbed overheads for that job. A bill of materials only lists the materials needed, and a goods received note records receipt of goods from suppliers. A factory-wide summary does not isolate cost by job.

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