CA Intermediate · Cost and Management Accounting · Job Costing
In job costing, which document is used to accumulate the material, labour and overhead costs of a particular job, and from which the total cost and profit of that job are finally ascertained?
The job cost sheet is the document that accumulates all costs of a specific job, including materials, labour, direct expenses and absorbed overheads, so that the total cost and profit on that job can be determined. A requisition note records only material issues.
- AMaterial requisition note
- BJob cost sheetCorrect
- CBill of materials
- DGoods received note
Explanation
A job cost sheet is opened for each job and collects direct material, direct labour, direct expenses and absorbed overheads. A material requisition note only records issue of material to the job and is not a cumulative record.
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