Job Costing Essay Example | Topics and Well Written Essays - 750 words

Job Costing - Essay ExampleIn legion(predicate) systems, bes can be classified in stages, cost classes and cost codes, and this breakdown must be meticulously customized to correctly reflect Dells needs. Dell should start by developing a team that will identify the needs of the company and organizes the structure and approach to be used to extend to them. This team should include among others, managers, account receivable, accounts payable, as well as payroll personnel since a various(a) group will consider the views of numerous people to whom the data will benefit. The team constituted by Dell should meet for discussions on the items on their checklist and find ways of assisting the company to determine what it needs from a job hosting system and then identify an approach and the details that should be monitored. In Dells case, every functional area can be affected by changes to activity-based costing and this makes it imperative to for managers to move and buy into all the fun ctional areas. Various people from different departments at Dell bring situation knowledge to their functions which are required to complete the set of activities in the entire company while appreciating the cost drivers of every activity. At Dell, job costing is utilized for the collection of costs associated with result labor, overhead and direct materials whereby overhead is allocated to computers, which are considered jobs, subject to a predetermined rate of allocation like square footage and cable car hours among others(Dussart, 2010).