Job Costing Practice Exam

About Job Costing
Job costing is a costing method used to determine the cost of specific jobs, which are performed according to the customer’s specifications. It is a basic costing method which is applicable where work consists of separate projects or contract jobs.

Job costing, also called project-based accounting is the process of tracking costs and revenue for each individual project. Job costing looks at each project in detail, breaking down the costs of labour, materials and overhead. It makes fewer assumptions than other costing methods.

Job costing is commonly used in the construction industry, where costs vary widely from job to job. But it’s also used by manufacturers, creative agencies, law firms and more. Because job costing tracks costs in detail for each job, it can be a helpful tool for small business owners to evaluate individual jobs and see if any expenses can be reduced on similar projects in the future.

Why is Job Costing important?
Job Costing is the method of determining costs, including materials, labour, and overheads for a project, or any specific orders from a customer. Such an approach helps to trace the costs of particular customer orders. Also, it helps a company to see if it can reduce the costs in later projects.

 Advantages of job costing
•    Profitability for each job can be individually determined
•    Provides a detailed cost analysis of materials, labour and overheads for each job as and when required
•    The efficiency of the plant can be controlled by confining attention to costs relating to individual jobs.
•    Helps in preparation of estimates
•    Comparison of actual cost with estimated cost and calculation of variances.
•    Helps in identifying unprofitable jobs
•    Helps in providing a precise quotation for a product

Who should take the Job Costing Exam?
•    Finance or costing professionals
•    Business owners
•    Entrepreneurs
•    Innovators
•    Anyone who wants to assess their job costing skills
•    Finance or costing managers and senior executives
•    Job costing consultants
•    Professionals working in outsourced companies responsible for costing
•    Any professional with skills and knowledge on job costing
•    Anyone interested in job costing
•    Students

Knowledge and Skills required for the Job Costing

Candidates gain quick success if they have skills of critical thinking and good communication skills.

Job Costing Practice Exam Objectives

Job Costing exam focuses on assessing your skills and knowledge in various types of direct and indirect costs

Job Costing Practice Exam Pre-requisite

There are no prerequisites for the Job Costing exam. Candidates who are well versed  in costing can easily clear the exam.

Job Costing Certification Course Outline

1. Material Cost
1.1 Inventory Control (Material Control)
1.2 Objectives of Inventory Control
1.3 Techniques of Inventory Control
1.4 Store-Keeping
1.5 Functions of Store-Keeping
1.6 Method of Pricing of Material Issues
1.7 Accounting of Material Losses
1.8 Control of Material Losses
1.9 Inventory Management

2. Labour Cost
2.1 Introduction to Labour Cost
2.2 Classification of Labour Cost
2.3 Accounting and Control of Labour Cost
2.4 Time Recording
2.5 Time-Keeping
2.6 Time Keeping
2.7 Overtime
2.8 Idle Time
2.9 Labour Turnover
2.10 Labour Remuneration System
2.11 Basic Methods of Remuneration System
2.12 Incentive schemes

3. Direct Expenses and Overheads
3.1 Direct expenses
3.2 Indirect expenses
3.3 Overheads
3.4 Collection of Overheads
3.5 Classification of Overheads
3.6 Allocation and apportionment of overheads (depart-metallization of overheads)
3.7 Allocation of Overheads
3.8 Apportionment of Overheads
3.9 Absorption of overheads
3.10 Methods of Absorbing Production Overheads
3.11 Over or Under Absorption Of Overheads
3.12 Treatment of Factory Overheads
3.13 Treatment of Administrative Overheads
3.14 Treatment of Selling And Distribution Overheads
3.15 Control of Overheads
3.16 Preparation of Cost Sheet

4. Job Costing
4.1 Enter job or project estimates
4.2 Create jobs or projects
4.3 Bill for jobs or projects
4.4 Add materials costs
4.5 Add direct labour costs
4.6 Add overheads
4.7 Invoicing from actual costs or estimate

Exam Format and Information
Certification name – Job Costing Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199