Costing Methods

driven by the requirements of the customer.

is maintained separately for each job to record the costs of materials, labour and overheads pertaining to that particular job.

On receipt of a production order, the production department issues a requisition note to stores. Surplus / incorrect materials returned are logged on a materials return note. Both flows post to the job cost sheet.

Daily time spent by each category of labour on the job is recorded. Wage-analysis sheets include overtime, idle time and shift-differential loadings. Net direct labour cost is posted to the job.