firm 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 Healthblend custom formular supplements. The materials in each formular 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)