in a job order cost accounting system used by a service business, what itemswould normally not be included?
Other - Business & Finance - 2 Answers
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Answer 1 :
Anything besides direct labour and direct materials would not be included. ----------- Not included: Indirect labour, overhead expenses like rent, utilities, etc., managerial and administrative salaries, and so on.
Answer 2 :
All those expenses which do not relate to a job will be excluded. Please remember that each job is recognized separately, hence all expenses, i.e., Direct Materials, Direct Labour and Overheads relating to each job will be included. The main point is the relationship of an item to the job. For example expenses incurred on Job # 101 will be charged to that job only. As another example, a business may hire an equipment to be used on a number of jobs. Now each job will be charged according to service rendered by the equipment on all such jobs using its service.
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