Job Costing: Evaluation and Implementation
We illustrate job costing using the example of Robinson Company, Which manufactures and installs specialized machinery for the paper-making industry. In early 2013, Robinson receives a request to bid on the manufacturing and installation of a new paper-making machine for the Western Pulp and Paper Company (WPP). Robinson had never made a machine quite like this one, and its managers wonder what to bid for the job. In order to make decisions about the job, Robinson's management team works through the five-step decision-making process.