Job Cost Statements- Theory Flashcards
1
Q
Direct Costs
A
These are costs involved in the actual making of a product e.g. direct materials, direct labour and direct expenses.
2
Q
Indirect Costs
A
These are overheads which are costs not involved in the actual making of the product but are involved in the running of the business and without which the product would not be made e.g. rent and insurance.
3
Q
Profit Mark-Up
A
This is a percentage of the total cost of the product.
4
Q
Job Costing
A
Job costing is used to determine the cost price of a single job or unit or “one off” piece of work which is produced according to the customer’s specifications e.g. building and installing a kitchen.
