Video: Job-Order Costing

In this lesson, Nick Palazzolo, CPA, breaks down the intricacies of job-order costing, explaining how this method is essential for unique, custom orders ranging from manufacturing to specialized services. He illustrates how costs are aggregated by individual job rather than department due to the distinctive nature of each project. Nick further clarifies the process of assigning costs and allocating production expenses for products and services that are distinguishable and require different amounts of effort to finish. This thorough breakdown provides a clear understanding of how customized jobs are costed in various industries.