Job Order and Variable Costing.

Please writhe 2 pages with 3 sources on the following:

What do you think is the main advantage to job order costing? Thinking of a company you worked for in the past, currently work for, or plan to work for in the future, how would the company use job order costing to assist them in determining the proper selling price for their product or service?

The following is from the professor:

Welcome to Week 3, Job Order and Variable Costing.

Job order costing is when costs such as labor, materials, and overhead are tracked to a particular job. This assists management to determine if that job was profitable or if the selling price will need to be adjusted in the future.

In addition, we will look at the differences between variable and absorption costing. One of the key differences in these two methods is the way fixed manufacturing overhead is accounting for as it relates to net operating income.

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