Firms operating in job-order industries produce a wide variety of services or products that are quite distinct from each other.
Customized or built-to-order products fit into this category, as do services that vary from customer to customer. Common job-order processes include printing, construction, furniture making, automobile repair, and medical services.
job-order systems may be used to produce goods for inventory that are subsequently sold in the general market. Often, however, a job is associated with a particular customer order. The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.
For job-order production systems, costs are accumulated by job. a job is one distinct unit or set of units. for example, a job may consist of a remodeling project for the Ruiz family or building a set of 12 tables for the children's reading room of the local library. This approach to assigning costs is called a job-order costing system. in a job-order firm, collecting costs by job provides vital information for management. for example, prices are frequently based on costs in a job-order environment. this would be the case for the Health-blend custom formula supplements. the materials in each formula would be different, as would the amount of labor and equipment needed (some formulas would be mixed and packaged, other would be ground and then pressed into tablets or encapsulated)