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In Job Costing, the cost of each project is calculated separately, and this cost is usually specific to that project. This means that the cost of each material, labor, and overhead is identified and accumulated separately for each project.
Regarding the costing method, there are different methods that can be used to calculate the cost of a job, including:
Specific Costing: This method identifies the actual cost of each material, labor, and overhead for a particular job. This method is suitable for businesses that deal with unique or custom-made products or services.
Average Costing: This method calculates the average cost of materials, labor, and overhead across all jobs. This method is suitable for businesses that deal with standardized products or services.
Normal Costing: This method calculates the cost of materials, labor, and overhead based on predetermined rates. This method is suitable for businesses that have a predictable cost structure.
In Business Central, you can choose the costing method that best fits your business needs. You can set up the costing method for each job in the Job Card, and the system will automatically calculate the cost of the job based on the selected method.
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