10 Questions
What is job costing?
Job costing is accounting which tracks the costs and revenues by 'job' and enables standardized reporting of profitability by job.
How is a job defined in job costing?
A job can be defined as a specific project done for one customer, or a single unit of product manufactured, or a batch of units of the same type that are produced together.
What expenses are tracked in job costing for a manufacturing setting?
Direct expenses such as direct labor and direct materials, and overhead costs like indirect labor, warranty costs, and quality control are tracked in job costing for a manufacturing setting.
How does job costing differ from process costing?
Job costing tracks costs by job or batch, while process costing tracks costs by process.
What is the purpose of a job profitability report?
A job profitability report provides an overall profit & loss statement specific to each job number.
What is a general ledger and what type of data does it hold?
A general ledger is a bookkeeping ledger that holds accounting data aggregated from subledgers and journals. It holds financial and non-financial data for an organization.
How is the general ledger classified and what accounts does it include?
The general ledger is classified into account categories such as income, expense, assets, liabilities, and equity. It includes accounts payable, accounts receivable, cash management, fixed assets, purchasing, and projects.
What are the main categories into which the general ledger is usually divided?
The main categories of the general ledger are assets, liabilities, owner's equity, revenue, expenses, gains, and losses.
What is the purpose of subledgers in relation to the general ledger?
Subledgers provide additional details for accounts such as cash, accounts receivable, accounts payable, etc. They are used to further subdivide the main categories of the general ledger.
What is the extraction of account balances from the general ledger called?
The extraction of account balances is called a trial balance.
Test your knowledge of job costing with this quiz! Explore the fundamental concepts of tracking costs and revenues by job, and understand the essential components of an accounting system that supports job costing. Whether it's assigning job numbers to expenses and revenues or defining jobs as projects or units of product, this quiz will help you grasp the key principles of job costing.
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