S3 Job Costing

What is the main purpose of Job Costing?

• To calculate the total sales of a company

• To calculate the cost of an individual job or task and the selling price to charge the customer

• To track the performance of employees

• To manage the company's stock inventory

What does "VAT" stand for in accounting terms?

• Variable Accounting Technique

• Value Added Tax

• Verified Annual Turnover

• Volume Allocation Total

What is a "Profit Markup"?

• The value of profit the business wishes to make from the individual job/task

• The value of loss the business expects to make from the individual job/task

• The value of sales the business wishes to make from the individual job/task

• The number of sales a business must make to breakeven

What types of jobs may require a Job Costing Statement? There are 3 correct answers!

• TripAdvisor review

• A bespoke wedding cake

• Painting the exterior of a house

• Mechanic work done on a car

Which of the following is an example of Job Costing?

• Calculating the cost of manufacturing a car.

• Calculating the cost of a monthly utility bill.

• Quote for a fitted kitchen/landscaping job.

• Calculating the cost of producing a movie.

What is given to customers as an approximate charge for the workforce required to complete a job?

• Material costs

• Overheads

• Labour

• Selling and distribution overheads

How are overheads applied to each job?

• Based on a fixed percentage

• Using pre-determined overhead absorption rates

• Equally divided among all jobs

• Based on the duration of the job

What is the total cost of Direct Materials for JOB 835?

• £1,300.00

• £200.00

• £2000.00

• £1,600.00

How much is the PROFIT (10% mark-up) on JOB 835, if the total costs equalled £3500.00?

• £350.00

• £3,500.00

• £770.00

• £400.00

What is the SELLING PRICE for JOB 835, if:

Total Costs = £50

Profit Markup = £10

VAT= £3

• £60

• £57

• £63

• £603