Job Order Costingg Researrch Final

Chapter 1
INTRODUCTION

Rationale of the Study
Job order costing is a system used by companies to track costs to a specific
product or service. The purpose of this system is to assign and accumulate costs
separately for each product or service. In a job-order costing system, a cost object is an
individual unit, batch, or a lot of a distinct product or service. It records the flow of costs
for each product or service and is used to price unique products for different jobs.
Companies also use these systems to track revenue and the resulting profit for each job. It
gives companies in all industries the ability to evaluate costs accurately and price services
correctly (The Institute of Cost Accountants of India, 2016).
The job order costing system is advantageous to companies as it allows them to
measure the profit or loss for each job. It helps to ascertain better whether specific jobs
are profitable and desirable to pursue in the future. Also, it aids in keeping track of
individuals' and teams' performance in terms of cost-control, efficiency and productivity
(Ingram, 2019). However, although job order costing is a very powerful concept in
theory, it is very complicated to implement in practice. Problems encountered in the
implementation of the job order costing system usually includes: (1) massive paper trail,
(2) difficulties in measuring the costs that are associated with a particular job, (3) conflict
within the organization, (4) overheads are based on estimates, and (5) overheads cannot
be controlled by local and small businesses.
Toyota operates its companies anywhere in the world with more precise way, they
can manufacture parts of different models of cars of the same category in one
factory. Process costing system is considered the main process that Toyota relies upon
to manufacture thousands of its identical products to their customers around the world. In
some cases, the Toyota company uses job order system to assigns cost for customers who
wish special order of custom vehicles. The customer orders special specifications for his
car, therefore, the company goes through specific process to comply with the costumer
and finally the company will earn good revenues from this order. This efficient process
which is adapted by Toyota, proved the best results that make Toyota one of the best
companies in the world. It is the best way to compete with cars manufactures in the world
(The Hybrid Experiment, 2012). In the local context, currently there is no study about job
order costing in the vicinity of Butuan City, Agusan Del Norte.
The study aims to recommend the effective and best practices in the application of
job order costing system from multinational to local/small businesses. To do so, the
researchers shall conduct an inquiry on the job order costing system of a multinational
and international company. With this, the researchers desire to provide a local company
within Butuan City with a comprehensive job order costing system. The subject local
company shall be LJ Cars Butuan Corporation while the multinational company shall be
Toyota Motor Corporation Butuan Branch.
Statement of the Problem

This study aims to identify and assess the best practices for application of job order
costing system and make recommendations to a local company here in Butuan City; it
seeks to satisfy the following questions:
1. What are the practices in the application of Job Order Costing to
companies/businesses?
2. What are the challenges usually encountered by the local company in the system
of Job Order Costing?
3. What are the best practices by the multinational/international companies in the
application of Job Order Costing?
4. How do these practices best apply to the local company?
Significance of the Study

This research is highly significant for the part of the Managers to the company as
well as to the staff and personnel because it gives them the following information about
the best practices and the appropriate methods. The results of this study will be beneficial
to the following:
Students. This will benefit those students that have inquiries regarding the
research topic. This may also serve as a basis for the students’ Projects, assignments, and
activities in job order costing.
Teachers. This study will serve as a useful learning material which they can use
to further explain to student’s certain information pertaining to job order costing.
Managers of the Company. This study will aid the managers or owners of the
company who are encountering difficulties in managing their systems of transactions to
the customers. May this serve as a guide to use this application in the handling of their
system.
Staff and Employees. This study will serve as an eye opener to the staff and
employees such that they will implement off best practices relating to job order costing.
Other business establishments. This study will serve as a useful reference that
provides useful and relevant information to other business establishments which are using
job order costing as their costing method.
Future Researchers. This study will be a useful reference for researchers who
are planning to pursue studies related to or similar to that of this study.
Scope and Limitations

This study focuses on the recommendation of the best practices of an effective job
order costing system in multinational and local companies such as Butuan city, Agusan
del Norte.
The Toyota Motor Corporation Butuan branch is chosen, a multinational company
and LJ Cars Butuan Corporation, a local business to conduct the research and will not go
beyond the said premises.
This study would also focus the appropriate and best practices in the application
of job order costing.
The researchers gathered the data from the said companies to recommend the
effective job order costing system.
Definitions and Terms
Accumulation using Job Order Costing System it accumulates materials, labor,

and overhead cost of customer’s specifications.
Allocation an act or process of allocating, assigning or distributing an amount or

portion of resources such as raw materials to use in a particular way.
Aptitude one’s potential, natural ability or skill to do work whether developed or

undeveloped which are gained through learning or acquired ability.
Benchmark serves as a standard or basis to measure and judge the practices used
by multinational companies.
Cost control is the practice of identifying and reducing expenses to increase its
profits with the use of budgeting.
Drudgery means dull work or hard menial.
Employee Time Sheets is a method for recording and tracking the amount of an
employee's time spent working. The employee timesheet can report total hours worked or
time spent working on a specific task or job.
Job Cost Sheet is a document used to record manufacturing costs and is prepared
by companies that use job order costing system to compute and allocate costs to products
and services.
Job-Order Costing is a system in which it is the assigning and accumulating jobs

of individual unit of output and it has its own distinct product according to the customers
specifications.
Overhead is those costs required to run a business, but which cannot be directly
attributed to any specific business activity, product, or service which are classified as
fixed, variable or a hybrid of both.
Material Requisition is used to authorize and keep a record of the components
used so that an appropriate inventory can be stocked to keep production moving.
Chapter 2
REVIEW OF RELATED LITERATURE
To provide direction, reference, and supporting topics of the study, and much
related literature, this review of related literature provides the frame of the study about
job order costing.
As the years have passed by, our way in the economy have changed. The first
reason is globalization. The world has been shrunk by information technology and open
economies. The second reason is that companies must take care of costs to meet the
descending price rate of the market. Competition in the mature lines of business
especially requires continuous productivity improvements. This leads to narrow
competencies and extensive outsourcing. (Kulmala, 2002).
Job order costing is the only way that companies can appraise the jobs that they
are about to take up. In the absence of a job order costing system, companies will not
have enough data to ascertain whether or not the job will be profitable. Job order costing
system enables a company to make reliable estimates about the monetary values of
materials, labor and overheads that will be spent while performing a job. A more efficient
job order costing system enables companies to make quotes that are low enough to be
competitive and high enough to be profitable (Juneja, 2015).
Since there is a significant variation in the products manufactured, the joborder
costing system will create a job cost record for each item, job or special-order. the jobs
cost record will report the direct materials and direct actually used plus the
manufacturing assigned to each job. For example, of an industry where job order costing
is used is the building construction industry since each building is unique. The
manufacturers of customers equipment or custom cabinetry are also an example
of companies that will keep track of production costs by item or job (Dangugwa, 2018).
Job Order Costing system works in a way where they satisfy their customers
personally by manufacturing each product specifically for them. This is called Job Order
Production; it means that the product is being made separately from others since it is
different from the rest. The products can vary from very big products that take a long
time to make to very small detailed work. Some very common products are football
fields, houses, custom jewelry, etc. Job Order Production not only exists for products, but
also for services. Some services that are offered from some companies are personalized.
For example, an interior designer is someone who will adapt to their customer ideas in
order to design their houses, offices, etc. Each customer has different likes and dislikes,
as well as opinions. Due to all of this the cost for the job made for each product or service
is different, this is why this is different than process costing (Gonzalo, 2019).
Job-order costing has several inherent benefits. One benefit is this method
complies with GAAP, since it is a form of traditional based costing, and both product and
period costs are combined to determine overhead. Other benefits include allowing
managers to more reliably calculate the costs on each job, leading to a better
understanding of profit compared to job costing’s parent method, traditional based
costing. Researchers believe this allows managers to establish which jobs are more
desirable and should be pursued (Ingram, n.d.) Some researchers also argue that other
benefits include managers being provided with the tools to track both an individual’s and
a team's performance with respect to cost-control, efficiency, and cost productivity
(Ingram, n.d.) This is done by analyzing job cost sheets to see how overhead costs
fluctuate. Since this fluctuation would be caused by the applied cost driver, managers can
analyze the applied overhead costs of similar jobs to better understand the individual’s or
team’s performance, depending on which is used. With job costing, the Work In Process
account also serves as a control account in the general ledger. This means that there is a
subsidiary ledger. This subsidiary ledger contains multiple accounts for each job that
support the total amount in the overall Work In Process account. This is useful because it
provides a check for a firm to help ensure that their Work In Process account is accurate
(Ingram, n.d.)
The cost accounting procedures are designed to assign costs to each job because
the output of firms involved in the industries mentioned above tends to be heterogeneous,
managers need a costing system in which costs can be accumulated by job or job order by
client or customer and in which distinct unit cost can be determined by for each job
completed. Hence, it is necessary to accumulate the three elements of cost applicable to
each job in total and then to average them over the units of product produced under that
particular job or order. Thus, the job-order costing system refers to the procedures to
accumulate costs when work is performed pursuant to an order, and when products are
manufactured or services rendered to meet individual customers' specifications.
A job can be categorized by the stage of its production cycle. There are three
stages of production; contracted for but not yet started, in process, and completed. The
production stages are supported by various documents providing information about the
job and supporting the journal entries related to the job (Kinney and Raiborn, 2013).
These documents help determine the cost of production of every job or order and
to know the profit or loss made on its execution. This ultimately helps the management to
judge the profitability of each job and decide the future course of action. It helps the
management to make more accurate estimates for costs of similar jobs to be executed in
future on the basis of past records. Management can easily and accurately determine and
quote prices of jobs of a similar nature which are in prospect. It also assist the
management to control the operational inefficiency by making a comparison of actual
costs with estimated ones (Lodha, 2019).
Sales Order
In Job Order Costing some company/business have sales order to help them
identify the specifics jobs that has to be done.
A sales order, explained as the internal document which explains the sale,

conveys important information to staff. Sales orders fully document the needs of
a customer. A sales order is also valuable for operational staff. Due to the fact that this
document fully explains the demand of the customer, it contains valuable information for
those preparing the delivery. This staff needs a sales order; processing products requires a
full understanding of the order which is being processed (Wilkinson, 2013).
Job Cost Sheet

Most companies require a job cost sheet because it is one of preliminary steps in
order to make a certain job.
A job cost sheet is a compilation of the actual costs of a job. The report is
compiled by the accounting department and distributed to the management team, to
see if a job was correctly bid. The sheet is usually completed after a job has been
closed, though it can be compiled on a concurrent basis A job cost sheet can be quite
complex to create, since it may involve different labor rates for dozens of people, as
well as a labor allocation for the payroll taxes and benefits incurred by those people,
and overtime. The job cost sheet is most commonly developed using an electronic
spreadsheet (Bragg, 2020).
Material Requisition Form

Material requisition forms are important to help keep track where the material is
being used.
It is a source document that the production department uses to request materials

for manufacturing process. The production manager usually fills out the materials
requisition form and delivers it to the materials or storage department where all of
the raw materials are stored. Once the materials manager signs off on the request, the raw
materials are moved from storage and placed on the production floor (Shaun, 2019).
Materials-requisition is the important stage in supply chain. This could result in

unnecessary wastage or losses or cost consumption, which will inflate the WIP costs
which will in turn increase the final cost of production (Shah, 2020).
Freight Ticket
Some International Companies also keep a track of the freight charges that they
have incurred for a specific job. It is important to determine your freight tickets because
this is one factor in accumulating and determining different costs to jobs.
Each freight ticket needs to be authorized with a job code and the costs must be
added to the job cost sheet. In the absence of these tickets allocation of these costs will be
a problem (Juneja, 2015).
Across many various business verticals as well as those manufacturing sectors

where transportation procurement for your freight is a daily part of the business, there is
some uncertainty about how and when to go about accounting for freight costs in an
enterprise’s general accounting. Even many accounting professionals may not be entirely
familiar with the normal and customary charges that come up when dealing with
accounting for freight costs accounting in general. Freight expense account is treated just
like any other expense account when the accounting equation must be used. Freight
expenses are considered to have a normal debit balance, with decreases being noted as
credits and increases noted as debits (Robinson, 2018).
Employee Time Sheets
As a company grows, it can be more difficult to keep track of what everyone is up

to, and where people are spending their time. Timesheets provide a simple solution to
problems that can affect growing companies and can help to minimize waste and improve
employee productivity. Used by companies large and small, and favored by agencies,
remote teams, and growing startups, employee timesheets are a quick and easy way
to make a meaningful change to the way your business runs. They can take the form of
paper printouts that individual employees keep at their desks and hand in at the end of
each week, an online shared document that everyone fills out each day, or a powerful
and automated online timesheet software that runs in the background and monitors what
your employees are working on (Nevogt, 2019).
Recently in some studies, technology has been integrating from other costing
system, for example, the job order costing system.
Bar code technology can be used to record labor time-reducing the drudgery in

that task and increasing accuracy. Bar codes also have many other uses. In a company
with a well-developed bar code system, the manufacturing cycle begins with the receipt
of a customer's order in electronic form. It is being integrated into all areas of business
activity. When combined with EDI or XML, it eliminates a lot of clerical drudgery and
allows companies to capture and exchange more data and to analyze and report
information much more quickly and completely and with less error than with manual
system (Malik, 2010).
In the past, job order costing consisted of hours of inputting data onto
spreadsheets. This was not only time-consuming but extremely prone to error. With
technology advancements and the introduction of mobile software, job costing is easier to
manage than ever before. Job order costing software eases the management process
through better calculations, tracking, easier completion of time cards, and better customer
relations (Ridell, 2017).
Fingerprint biometric time clocks are great for keeping track of when
employees clock in and out of the office. The software then compares the scan with
available templates to locate an exact match within the system. Once the appropriate
match is found, the system tracks clock-ins and clock-outs. Biometric technology has
made it easier to track employee time and attendance through the ability to recognize
physiological characteristics using a fingerprint clock in system among other tools
(Epay Systems, 2017).
Managing Diversity with technology Andersen Windows of Bayport, Minnesota,

has developed techniques that allows it to produce just about any window configuration
that a customer might order. Andersen has installed hundreds of Macintosh-based
systems for designing windows at distributors and retailers around the country. Beginning
with a standard design from the company's catalog, this system allows a customer to
"add, change, and strip away features until they have designed a window, they are
pleased with...The computer automatically checks the window specs for structural
soundness, and then generates a price quote." Once the sale is made, the retailers
computer transmits the order with all of the necessary specifications to Andersen. At
Andersen, the order is assigned a unique number and is tracked "in real time, using bar
code technology, from the assembly line to the warehouse. This helps ensure that what
the customer orders is what gets built and ultimately what gets shipped. Last year the
company offered a whopping 188,000 different products, yet fewer than one in 200 van
loads contained an order discrepancy (Martin, 2010).
Technological advances enable small businesses to work more efficiently in a

number of different ways. Team collaboration software and apps have changed the way
many businesses operate. Companies no longer need to save multiple versions of
documents and spreadsheets, and email them to each other in order to get feedback from
their colleagues (Ahmed, 2019).
Technology has important effects on business operations. No matter the size of

your enterprise, technology has both tangible and intangible benefits that will help you
make money and produce the results your customers demand. Technological
infrastructure affects the culture, efficiency and relationships of a business. It also affects
the security of confidential information and trade advantages (Campbell, 2015).
Technology is playing an increasing role in aiding the management of jobs and in

tracking job costs. Even basic accounting software typically has a job costing module. By
automating the data entry processes, more accurate and timely data are gathered and
employees are relieved of the recurring burden of logging data. The latest technology
being adopted in job shops is project management software. These programs allow
operational and financial data about jobs to be shared throughout the firm. Intranets are
being created to facilitate the dissemination of this information.
According to Business-Software.com they are now offering fully functional
systems like SAP to improve the accounting records to companies. SAP offers a full-
featured suite of financial management functions available in its SAP ERP Financials
platform as well as a number of other modules. It enables businesses to improve insight
into their fiscal processes by streamlining accounting procedures and better managing
risk. SAP ERP is a comprehensive software platform that enables open communication
within and between all company functions. It provides real-time visibility into your
company’s processes, which helps reduce errors, improve communication and streamline
your financial operations. It is best for large multinational companies looking to
streamline and automate financial processes while ensuring compliance with global
financial reporting standards.
Information technology simplifies the tracing of costs to jobs. If direct
manufacturing labour-hours is used as the cost allocation base, very refined systems can
trace direct manufacturing labour in minutes or longer intervals to each job. Employees
simply scan their identification card and select the job identification code when they
begin and again when they end their task. The computer then reports not only the DMLH
spent, but also the indirect costs of fringe benefits and rework for each job. For fixed cost
allocation, when the cost object is a job it is sensible to collect the fixed costs incurred
during the entire time period of the job.
Northrop Grumman, Inc. is a leading provider of systems and technologies for the
US Department of Defense. Competitive bidding processes and increased public and
congressional oversight make understanding costs critical in pricing decisions, as well as
in winning and retaining government contracts. Each job must be estimated individually
because the distinct outputs consume different amounts of Northrop Grumman’s
resources. A project team of Northrop Grumman, Lockheed Martin, and BAE Systems
was awarded the System Design and Demonstration contract to build the F-35 Lightning
II aircraft—also known as the Joint Strike Fighter—in late 2001. This project, worth over
$200 billion, will create a family of supersonic, multi-role fighter airplanes designed for
the militaries of the United States, United Kingdom, Italy, The Netherlands, Turkey,
Canada, Australia, Denmark, and Norway. In December 2006, the F-35 Lightning II
successfully completed its first test flight; it appears in this photograph during subsequent
testing at Edwards Air Force Base, California, in 2009. The project team for the F-35
Lightning II uses a job-costing system. There are two direct cost pools, material and
manufacturing labour. The remaining costs are accumulated in one overhead cost pool.
The cost allocation base is the total budgeted direct materials cost. This job-costing
system allows managers to assign costs to processes and projects. Managers use this
system to actively manage costs. Program representatives from the Department of
Defense and members of Congress have access to clear, concise, and transparent costing
data when they complete their audits.
Job order costing requires an elaborate system in place. In modern times, we have
information technology to the rescue. Companies can now buy off the shelf products for
job order costing and use them to simplify the creation of the elaborate system. The
bookkeeping staff needs to be trained about the specifics of job order costing. This
training is often expensive and takes time. Only after the process has been somewhat
established, does a job order costing system give the benefits that it has been touted to
provide. Job order costing system relies on experts to make certain decisions. For
instance the allocation base needs to be selected, predetermined overhead rates need to be
created and such other tasks need to be done. These tasks require skill and judgment.
Only a person that is thorough with the operations of the firm can do these tasks. Thus,
the firm must ensure that they have relevant expertise before they begin adopting the
technique (Juneja, 2015).
Companies in the white-collar sector of business, including law firms, accounting

businesses and private investment companies can utilize job order costing to manage
individual client accounts. For example, accounting firms can consider each individual
client a job. Firms complete job order cost sheets each business day, detailing how
accountants are handling client accounts and how many hours a client's needs consume
each day. This generates daily costs that businesses can use to measure how much money
firms bring in each day versus the costs associated with job activities (Lister, 2019)
.One advantage of job order costing is that it allows managers to calculate the
profit earned on individual jobs, helping them to better ascertain whether specific jobs are
desirable to pursue in the future. This is best for businesses that do highly custom work,
such as construction contractors and consultants. On the other hand, a disadvantage of job
order costing is that employees are required to track all materials and labor used during
the job. As an example, consider a construction contractor using a job order costing
system. The contractor has to keep track of all the wood, nails, screws, electrical fixtures,
paint and other materials used on the job, as well as tracking workers' lunch breaks and
hours worked (Ingram, 2019).
Manufacturing companies incorporate job order costing as a means of controlling

usage of raw materials, production equipment and labor hours. These businesses consider
each customer order a separate job for the purposes of job order costing. Alternatively,
manufacturers may group smaller value projects together under a single job heading.
How manufacturers group jobs depend on the size of the company (Irvin, 2019).
IKEA is a European multinational group that designs and produces ready-to-

assemble furniture, kitchen appliances, home accessories or home services. The company
is using a job order costing since they both manufacture and offer service where in
manufacturing they create innovative designs and realizing it with the collaboration of
long-term suppliers and designers in order to have alternative light weight raw materials
making the price lower. The integrated process has made it very difficult for competitors
to compete on price or design, leaving IKEA at the highest of its target market
(Perry,2015).
Construction projects require a range of inputs, from labor to various types of

materials and tools. Identifying the exact cost of all inputs for specific jobs can be
challenging. Costing techniques in construction management require input workers on the
job and solid record-keeping. Job costing can be especially useful for construction project
managers to keep track of their total job expenses (Irvin Bookkeping, 2019).
A job-order cost system is used when heterogeneous products are involved. A
capacity measure should be chosen that best suits the company’s planning and
performance evaluation objectives (Anta et al., 2010). Employees complete job order cost
sheets for each order and usually separate expenses into three main categories: direct
material, direct labor and manufacturing overhead. Companies in many industries can use
job order costing, though a variety of product offerings/services complicates the tracking
of expenses (Lister, 2019).
Several of the accounting firms actively involved in bankruptcy audits have

estimated that at least 90 percent of the financially troubled businesses they examine have
very inadequate accounting records. Although poor accounting information or records
may not be the underlying cause of failure, their inadequacy does prevent the business
from taking corrective action in many cases (Buckley, 1999).
Job-order costing has several inherent benefits. One benefit is this method
complies with GAAP, since it is a form of traditional based costing, and both product and
period costs are combined to determine overhead. Other benefits include allowing
managers to more reliably calculate the costs on each job, leading to a better
understanding of profit compared to job costing’s parent method, traditional based
costing. Researchers believe this allows managers to establish which jobs are more
desirable and should be pursued (Ingram, n.d.)
However, job-costing has several shortcomings. The method requires extraneous

employee labor since employees must track all material and labor for each job. This can
be time consuming, and thus costly, for the firm. Also, record keeping varies for each job
since jobs vary, and jobs may be inaccurately charged for inefficiencies, such as
downtime (Lal, 2009).
Managing cash flow is a perpetual struggle for most business owners. According
to the 2019 Small Business Trends report from Guidant Financial, 33 percent of small
business owners surveyed cited a lack of cash flow as their greatest challenge. In terms of
small business challenges, Guidant Financial ranks a lack of capital on par with a lack of
cash flow. That’s partly because acquiring funding can be difficult. According
to Biz2Credit’s May 2018 Small Business Lending Index, big banks only grant about one
in four small business loan applications (Smith, 2019).
The Performance Based Studies Research Studies Group (PBSRG) at Arizona

State University (ASU) has been studying the cause of increased cost and time in
construction and other projects for the last 20 years. The focus of this research effort is to
analyze the economic and performance impact of a delivery process of construction
called the Job Order Contracting process, to evaluate the value achieved when utilizing
JOC over other traditional methods to complete projects. The study identifies the
potential economic savings of utilizing JOC. The results of the research show that in
comparison to more traditional models, JOC has large cost savings, and is preferable
among most owners who have used multiple delivery systems (Arizona State
University,2015).
A wrong system leads to wrong allocation of costs. So, the jobs that are
unprofitable for the company look profitable. This ends up in the company taking wrong
jobs. Over a period of time, this leads to losses (Juneja, 2015). Without meticulous
attention to cost information, a business would put itself in a very volatile position.
Accurate cost data allows a business to sculpt well-informed foresight to make future
decisions (Melanie, 2019).
According to Bangladesh Open University, Job-order costing has the following

disadvantages: (i) Job-order costing system is comparatively more expensive as more
clerical work is involved in identifying each element of cost to each job or work order.
School of Business Unit-3 Page - 10 (ii) With the increase in the clerical processes,
chance of error also increases. (iii) Job costing is a historical costing which ascertain, the
cost of a job or order after it has been manufactured. It does not facilitate control of cost
unless it is used with standard or estimated costing. (iv) If major economic changes take
place, comparison of cost of a job for one period with that of another becomes
meaningless. Distortion of cost also occurs when the batch qualities are different.
Job order costing is also used in service organizations such as law firms, movie
studios, hospitals, and repair shops, as well as manufacturing companies. In a law firm,
for example, each client represents a “job,” and the costs of that job are accumulated day
by day on a job cost sheet as the client’s case is handled by the firm. Legal forms and
similar inputs represent the direct materials for the job; the time expended by attorneys
represents the direct labor; and the costs secretaries, clerks, rent, depreciation, and so
forth, represent the overhead (Ahmed, 2019). In sum, the mangers and business owners
should be aware that Job order costing is a versatile and widely used costing method, and
may be encountered in virtually any organization that provides diverse products or
services.
Using job cost data from a leading printing company in Taiwan, the study
empirically examines product pricing behavior both before and after a change in the job
order costing system. As direct material costs are billed separately, and labor costs are
fixed, only a negligible proportion of the job costs is variable at this company. A key
finding is that allocated fixed job costs are significant in explaining variations in short run
prices even after controlling for job volume and quality requirements. The results also
indicate that pricing behavior changed following the change in the job costing system.
After the change, prices depend more on the full costs calculated based on the new
system than on the full costs based on the old system, although neither cost estimate was
reported to marketing managers when bidding for jobs. The case for improvements in the
design of product costing systems is often motivated by appealing to the potential impact
of costs on pricing decisions. However, there has been scant, if any, empirical evidence
on whether, and to what extent, costs influence prices, and whether full as opposed to
variable costs are associated with prices. By documenting the role of full costs in pricing
decisions and the impact of a change in the job costing system on job prices in one
organization, we have sought to stimulate empirical research on this important research
question in management accounting (Chang, 2000).
A company that has a large number of jobs that vary in size, time, or effort may

not know which jobs are responsible for disproportionately large costs. Job order costing
can assist in determining which jobs are truly profitable and can help managers to better
monitor costs. A job order costing system was implemented to track the per-period and
total costs associated with each client. Unprofitable ac-counts were dropped, and account
managers felt more responsibility to monitor and control costs related to their particular
accounts.
A job order cost system is one in which a firm counts the costs for each separate
"batch" of work separately. In other words, the company treats different jobs as separate
things and therefore tracks the costs of each job separately from the other jobs. Because
of this, a firm that uses this sort of system should be one whose jobs are not all the same.
In short the kind of firm that should use this system is a firm that does many jobs that are
distinguishable from one another (Irvin Bookkepinng, 2019).
Chapter 3
METHODOLOGY
This chapter provides information about the area the researchers will be
conducting their study. It described the research method used and the instrument with
regards to the statement of the problem. The researchers chose a one-on-one interview
with the manager/owners of the said companies.
Research Design
The researcher used the Qualitative-correlational method, which focuses on

obtaining data through open-ended and conversational communication. This method aims
to answer the “What” and “Why” questions in a complete and detailed description.
In which researchers measures two variables, understands and assess the relationship
between them with no influence from any extraneous variable.
Research Environment Population and Sample
The study was conducted in two companies, namely the multinational company,
the Toyota Motor Corporation Butuan branch, and a local business, the LJ Cars Butuan
Corporation, Agusan del Norte. The region is a fast-growing municipality casting around
business opportunities. To get sufficient information, the researcher chose the indicated
companies since it accessible and has a good value entity.
Research Instrument
The researchers had come up with a self-administered interview questionnaire and

a short interview. The interview of the participants will be used as the main source of
data in this research. The questionnaire contains a set of question that will help determine
the current costing and the best practices as to the application of job order costing from
the said companies.
The second part will be the short interview that will record the insights and ideas
of the participants in the study. The main purpose of this questionnaire is to identify
determine the current costing and the best practices as to the application of job order
costing from the said companies.
Data Gathering Procedure
The researchers aim to find out the views and assess the application of the job
order costing and make recommendations of the effective job order costing system. To
gather all the necessary data for this study, the researchers have made request letters to
the said companies in order to allow them to conduct a survey to the 2 indicated
companies. This letter was approved and the researcher immediately conducted the
survey to the selected participants. The letter was approved and the researcher
immediately conducted the survey on the agreed dates of conduct.
Chapter 4
PRESENTATION, ANALYSIS AND INTERPRETATION
This chapter contains the answers to the questions created in order to achieve the
researcher’s objectives. It is accompanied by corresponding analysis and interpretations
with relation to specific literatures.
Table 1
Interview with the Local Company
(LJ Cars Butuan Corporation)
Question #1: What is the current costing method that is used by your company?
Job order costing system
Analysis and Interpretation: The participants cited that they uses Job Order Costing
system in allocating the costs of their products. “Job order costing is the only way that
companies can appraise the jobs that they are about to take up. In the absence of a job
order costing system, companies will not have enough data to ascertain whether or not
the job will be profitable. Job order costing system enables a company to make reliable
estimates about the monetary values of materials, labor and overheads that will be
spent while performing a job. A more efficient job order costing system enables
companies to make quotes that are low enough to be competitive and high enough to
be profitable (Juneja, 2015).
Question #2: How does your company compute the flow in your job order
costing?
First, we make an estimate a job estimate, if the prices are confirm by the customer, job
order contract follows and the time frame of work to accomplish the job order.
Analysis and Interpretation: The company’s job of computing the flow in their job
order costing relies on the prices confirmed by the customer. A job can be categorized
by the stage of its production cycle. There are three stages of production; contracted for
but not yet started, in process, and completed. The production stages are supported by
various documents providing information about the job and supporting the journal
entries related to the job (Kinney and Raiborn, 2013).
Question #3: Did the company have any of the following:
A. Sales order
B. Job cost sheet
C. Material Requisition
D. Freight ticket
E. Employee time sheets
A. ahh sales order is equivalent to job estimate. yes we have job estimate"
B. Job cost sheet? uhmm our application is job order"
C. we had no inventory so we have an actual purchase of materials as needed in
the job order
D. freight is usually add on to the price of the spare parts
E. we have a daily time record of every employee in our company
Analysis and Interpretation: The company is hands on on every party or their

business. Everything that is necessary in a business is present in their company. The
company has sales order that helps them in the company. According to Wilkinson,
2013, In Job Order Costing some company/business have sales order to help them
identify the specifics jobs that has to be done. They also use job cost sheet which is
according to (Bragg, 2020), A job cost sheet is a compilation of the actual costs of
a job. The report is compiled by the accounting department and distributed to the
management team, to see if a job was correctly bid. The company also have a
material requisition form. It is a source document that the production department uses
to request materials for manufacturing process. The production manager usually fills
out the materials requisition form and delivers it to the materials or storage department
where all of the raw materials are stored. Once the materials manager signs off on the
request, the raw materials are moved from storage and placed on the production floor
(Shaun, 2019). A freight ticket which is, each freight ticket needs to be authorized with
a job code and the costs must be added to the job cost sheet. In the absence of these
tickets allocation of these costs will be a problem (Juneja, 2015). Lastly they also have
Employee time sheet that can help the owners of the business to easily determine the time
accumulated time for the certain job in a job order system.
Question #4: Does your company have any technology integrated accounting
software from the job order costing system? If yes, why?
No, currently we don’t have technology integrated accounting software in our business
we only use manual labor in computing the costs of their desired specification towards
the car repair.
Analysis and Interpretation: The company is still growing and looking out on
acquiring technology that is integrated to job order costing. Technology can be an
efficient tool to manage transaction in job order costing. According to Campbell, 2015,
technology has important effects on business operations. No matter the size of your
enterprise, technology has both tangible and intangible benefits that will help you make
money and produce the results your customers demand. Technological infrastructure
affects the culture, efficiency and relationships of a business.
In general technology can make businesses grow and facilitates the management
towards transaction of the entity. It can be useful and efficient because it is powered by
technological software in which it has advance accounting programs.
Question #5: Being an established business, what are the problems that are
usually facing related to job order costing?
ahh the usual problem is the unavailability of parts that causes the delay of jobs and the
encountered of the parts with factory defect. Some cases too are the accumulating of
the overheads and calculating costs.
Analysis and Interpretation: The company is encountering a hard time dealing with
the delay and and the computations of the total cost of the business. There are also
problems in job order costing according to
Question #6: How do you solve these problems?
Honestly, we tell the customer the situation to avoid ahh misinterpretation ahh
especially when the parts ordered outside the area like, ordered in Manila so we are,
ahh the transportation is out of control of our company so we just tell the customer the
real situation happened.
Analysis and Interpretation: The company honestly inform others about the problem
they are encountering with. They are transparent for every possible problem that will
occur. “Without meticulous attention to cost information, a business would put itself in
a very volatile position. Accurate cost data allows a business to sculpt well-informed
foresight to make future decisions”(Melanie, 2019).
Table 2
Interview with Multinational Company
(Toyota Butuan City)
Question #1: What is the current costing method that is used by your company?
Sa Toyota, since dili man siya manufacturing so wala gyud mi nigamit ug process
costing. Actually, among gamit gyud is Job Order Basis so specific job in a certain
costing so example kanang nagpa service so once magpa service naa mi gitawag na
repair order. So gawan niya ng repair order yung sasakyan. Then that specific repair
order, doon ngayon naka classified yung mga cost ni repair kung ano yung mga sira sa
kanya. So merong specific na job order/repair order na naka allocate ana na job. So
atong job sa Toyota classified into 3 kinds; General Job, Body and Paint Job, at tsaka
Periodic Maintenance. So, kung mag pa change oil ka so that is periodic maintenance
ang tawag doon. So syempre pag Periodic Maintenance, first 1,000 up to 5,000 direct
labor yan, so yung babayaran ni customer sa cost na lang sa oil. So yung Body and
Paint naman pag may sira o dent yung sasakyan, may scratches, yung mga alignment
yun madaming involve, ang tawag doon is specific siya na repair order. So, servicing
company man kami so wala siyay processes na costing.
Analysis and Interpretation:
Toyota is widely known as an automative manufacturer which specializes in job order.

As they also stated their specialization hence, they use job order costing. The company
indicates its process in the said costing providing examples and situations in relation.
Job order costing system enables a company to make reliable estimates about the
monetary values of materials, labor and overheads that will be spent while performing
a job. A more efficient job order costing system enables companies to make quotes that
are low enough to be competitive and high enough to be profitable (Juneja, 2015).
Question #2: How does your company compute the cost flows in job order
costing?
Ah yes system generated man kami so every time na may cost na na incurred within
that job so for example may parts na na issue doon so ang cost noong parts ay system
generated pa out yun sa inventory once na issue na yun sa warehouse out na yun sa
inventory and entry nun is work in process so lahat ng mga transaction na na ano sa
repair order wala munang reimbursement doon lahat system generated sa lahat ng cost
doon ay nandoon na sa system with regards na sa materials, parts, katulad nung
pretroluem, oil at lubricant na materials doon naka system generated na. So of course,
may corresponding cost yun. Once na ma issue yun sa warehouse o ma issue yun sa
particular na unit naka work in process nay un then once ma close na yung repair order,
ano kasi yan eh every repair order may process so open repair order at gawan ng
process then close once na ma close na yung repair order di na yan magalaw. Ang
meaning ng di na magalaw is wala ng makakalagaw except me so control ko yan. So
yun ang process ng costing, every time na may system generated is real time, so
ngayon siya lalabas sa warehouse ngayon din ang corresponding cost niya for that
parts. Kung kailan siya makoclose doon din siya ma convert into Dcosting.
Analysis and Interpretation: Toyota company manages their production and

job orders using a generated system which operates when there is motion in costing.
Every time there is a cost incurred within a specific job the generated system takes care
of sorting and assessing it to be acquired from the warehouse and out from their
inventory. All of their transactions are system generated as well as costs from parts,
accessories, etc. And the only way that it can be meddled with is through one person
only and that is the finance manager. It is also stated that it systemized in real time so if
the warehouse releases parts it corresponding costs are immediately incurred.
Technology has important effects on business operations. No matter the size of your
enterprise, technology has both tangible and intangible benefits that will help you make
money and produce the results your customers demand. Technological infrastructure
affects the culture, efficiency and relationships of a business. It also affects the security
of confidential information and trade advantages (Campbell, 2015).
Question #3: Does the company have any of the ff.?
a. Sales Order
b. Job Cost Sheet
c. Material Requisition
d. Freight Ticket
e. Employee Time Sheets
A. Yun yung sales order yun ang matatawag natin na repair order
B. Yes, may job cost sheet. Talaga, Para yun ang tingnan, once na may customer si
Service Adviser gagawa yan ng repair order. Paggawa ng repair order, mapri-
print yan ng system na kung anong kailangan na parts. Tapos yung print out na
yun ay yun ang guide ni Technician na kung ano ba ang kailangan na unit, or
parts na kailangan i-replace para ma i-repair. So, para may guide ang technician
so cost computed parin.
C. Yes, every time na may order yun nga diba may materials na kailangan sa
sasakyan from control from warehouse meron tayong tinatawag na Issue Slip,
So yun hindi mailalabas ang certain unit o materials kung wala siyang Issue
Slip.
D. Wala man kami nyan kasi sa servicing lahat ng parts free delivery from the
planta
E. Wala kaming employee time sheets. Ah oo, sa labor mag system kami diri, Sa
job control meron kaming tinawag na clock-in at clock-out. Si Job Controller
siya ang mag maniobra doon sa application na yun na kung ilang hours ang na
incurred ni technician in a particular job. So ang tawag diyan ay clock-in clock-
out.
A. Toyota uses repair order as their form of sales order. Due to the fact that this
document fully explains the demand of the customer, it contains valuable
information for those preparing the delivery. (Wilkinson, 2013)
B. Yes, Toyota has job cost sheet. It is what they rely on to manage the sales
order. The system prints the job order sheet and it becomes the guide for the
Technician to know what are needed units, or parts needed to be replaced. It is
again systematically cost computed. The sheet is usually completed after a job
has been closed, though it can be compiled on a concurrent basis A job cost
sheet can be quite complex to create, since it may involve different labor rates
for dozens of people, as well as a labor allocation for the payroll taxes and
benefits incurred by those people, and overtime. (Bragg, 2020)
C. Every time a customer issues an order there will always be a need for materials
to work on the vehicle and it is from the warehouse. In Toyota, they use an
Issue Slip which is similar to a Material Requisition. So, units cannot be
released from the warehouse without the Issue Slip. Material requisition forms
are important to help keep track where the material is being used. (Shaun,
20190
D. Toyota doesn’t possess the said Freight Ticket since Toyota as a servicing has
free delivery from the factory.
E. Toyota doesn’t provide employee time sheets. The way they manage their labor
is also through a system. They have this system called a clock-in and clock-out.
The Job Controller maneuvers the application to how many hours are incurred
from the Technicians labor in a specific job. Timesheets provide a simple
solution to problems that can affect growing companies and can help to
minimize waste and improve employee productivity. (Nevogt, 2019)
Question #4: Does your company have any technology integrated from the job
order costing system? If yes why?
a. Please indicate what type of technology integrated system.

b. Does it help in performing transactions efficiently?
A. Yes, yun na nga we are using SAP. Lahat ng dealer ng Toyota is using SAP
B. Yes, mas dali. Lahat mong kailangan na report, si SAP kasi is siya yung parang
system na pwede siya I datable ano siya flexible siya anong kailangan mo na
report pwede siya. Sa amin sa Toyota, car dealer, at saka sa mga hotel iba ang
ano nila sa SAP at flexible siya. Pwede siyang gawing system sa inyong
business
A. Toyota manages their costing through a technology integrated system called

SAP. And they stated that all dealers of Toyota are using it.
B. The technological system they use gives the company the convenience and
makes their pace efficient. All the reports they need is present in SAP. They
also stated that SAP is flexible and can encompass as much data as needed. Its
flexibility expands to other different companies and businesses. Technological
infrastructure affects the culture, efficiency and relationships of a business. It also
affects the security of confidential information and trade advantages (Campbell, 2015).
Question #5: Do you think your way of costing can help the local companies?
How?
Yes, of course sa paggawa ng Purchase Order. Madali lang siya, mag phase out. Kasi
tung PO namin system generated siya. Pag kailangan namin ng goods from other
supplier makakatulong yun sa kanila i-trace yung mga cost na ma receive, madali lang
ma trace unlike sa manual.
Toyota company states that their way of costing is very much helpful to local
companies in terms of making Purchase Order. Since their PO is systematically
generated its easier to assess and trace goods from suppliers. It will also benefit local
companies to easily track their costs. Technological advances enable small businesses
to work more efficiently in a number of different ways. Team collaboration software
and apps have changed the way many businesses operate. Companies no longer need to
save multiple versions of documents and spreadsheets, and email them to each other in
order to get feedback from their colleagues (Ahmed, 2019).
Question #6: Being in an established company, what are the problems the
company is usually facing related to job-order costing?
So far wala naman kaming nakikita na as in a big talaga na problem with regards sa
current manangement.
They do not find the company in difficult situations nor have they experience
complications.
Question #7: How do you solve these problems?
None.
According to the question the company does not experience problem towards the
operation of the business.
Question #8: Can you give some tips to the local companies/businesses here in
Butuan city in relation with their costing?
When we speak to costing kanang ang ma advise lang nako is kung system generated
inyong gamit madali ra nating makita ang mga error. Sa SAP kasi ang ginagamit niya
ay tinatawag natin na dual accounting. So control niya ba, may soecific accounts na ise
set-up ni SAP. So madali lang siya ma trace kasi dual accounting man si SAP, so yung
costing madali ring makita dahil naka set-up naman doon. For example, 100 yung per
hour mo tapos ilang oras na na incurred sa particular na job is automatic na siya ma
compute. So lahat naman yata ng local companies is using system generated? Sa SAP
kasi, siya na ang bahala. From preparing repair order up to work in process at up to
cost of sales siya na bahala, mas madali i trace.
Toyota company advices small businesses to try system generated costing

measures. In SAP, it does dual accounting. Its easy to trace and track parts and
accounts because of its features. In SAP, it does the costing work for the company
therefore making them focus on the specific job. Technology has important effects on
business operations. No matter the size of your enterprise, technology has both tangible
and intangible benefits that will help you make money and produce the results your
customers demand. Technological infrastructure affects the culture, efficiency and
relationships of a business. It also affects the security of confidential information and
trade advantages (Campbell, 2015).
Chapter 5
Summary of Findings, Conclusion and Recommendation
Summary of Findings
The research is all about job order costing. There are two companies chosen
which is Toyota Cars Butuan for the multinational company and LJ Cars Corporation for
the local company.
The study sought to compare the practices of company in using job order costing.
The study also aims to benchmark the best practices from the multination company to the
local company.
The study used the Descriptive-Qualitative method. The data is acquired through
a series of open-ended questions that basically answer the “What” and “Why” questions
in a complete and detailed description.
Moreover, the researchers conducted an interview to the both companies. Finally,
the data were gathered, tallied, transcribed and analyzed.
Based on the analysis, the following results were noted.
1. Based on the study conducted, Toyota Company uses job order costing and they
uses repair order as their sales order. That document basically explains the
demand of the customer. Toyota has also job order cost sheet. As what they have
said, it is what they rely on to manage their sales order or what they call as repair
order.
2. Based on the study conducted, the local company usually encounter a problem
with the unavailability of parts, factory defects and accumulation of overhead cost
and expenses which can either delay a job or having a hard time computing the
profit for the job.
3. Based on the study conducted, the best practice in the application of Job Order
Costing would be technological advancement.
4. Based on the study conducted, through the use of technology advancement and
the introduction of mobile software, job costing is easier to manage than ever
before. Job order costing is time-consuming, but software helps make it a little
timelier. Once the numbers are uploaded into the software, the company’s
employees will be able to minimize their time and do job order costing easier and
efficient. This lessens the likelihood of errors and delivers an estimate to your
client faster.
Conclusions
Based on the findings gathered from this study, the following conclusions were
drawn to answer the problem stated in this study. The researchers concluded that:
1. What are the practices in the application of Job Order Costing to

companies/businesses?
It revealed that the company uses Job order costing and they used it to allocate the
costs of their products which also includes their costs in materials, labor and
overhead.
2. What are the challenges usually encountered by the local company in the system
of Job Order Costing?
The local company usually encounter a problem with the unavailability of parts,
factory defects and accumulating cost and profit. In which cases, this causes the
delay of jobs and errors in the calculations of expense and income would likely to
affect the business and be in a volatile position.
3. What are the best practices by the multinational/international companies in the
application of Job Order Costing?
It shows that the best practice would be technological advancement in the
application of Job Order Costing.
4. How do these practices best apply to the local company?
Estimating projects and managing costs is a tough task, but with the right type of
job costing software, it’s not impossible. It shows that through the use of
technological advancement, it increased the accuracy and reduced the effort
needed to record costs on specific jobs.
Recommendations
The given findings and conclusions said above; the following recommendations
were presented.
Students. The students must have a wide knowledge of different costing system,
not just job order costing but also other costing systems in order for them to be fully
equipped in their future jobs on what kind of costing system they will going to apply.
Teachers. The teachers must be credible enough to teach the students. The
teachers must uphold competence in order for them to produce a competent students that
will face the workforce in the future.
Managers of the company. The managers must be careful in choosing a costing

system in order for them to have accuracy in computing their costs and profits to prevent
losses and also to assess which kind of jobs has the highest profits and which jobs must
not continue to operate because it does not have a profit.
Staff and Employees. The staffs and employees must be careful in operating the
business. They must possess that kind of expertise wherein their skills or aptitudes really
suit their jobs.
Other business establishments. As well as what other company’s concern, other

business establishments must be really careful in computing their profits. They must be
careful in choosing what kind of costing system they will going to apply.
Future Researchers. This study can be a tool for them to have future researches
related to their present topic. They can do improvements and further research to give new
and relevant ideas.
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Appendix A
(Research Instrument)
Research Title: “Benchmarking: A case study of Job Order Costing between Toyota
Butuan and LJ Corporation Butuan.”
The researchers had come up with a self-administered questionnaire and a short

interview. The questionnaires will serve as the main source of data in this research.
Multinational Company: Toyota Motor Corporation Butuan branch:

1. What is the current costing method that is used by your company?
2. How does your company compute the cost flows in job order costing?
3. Do the company have any of the ff:
Sales Order
a. Job Cost Sheet
b. Material Requisition
c. Freight Ticket
d. Employee Time Sheets
4. Does your company have any technology integrated from the job order
costing system? If yes why?

b. Does it help in performing transactions efficiently?
5. Do you think your way of costing can help the local companies? How?
6. Being in a established company, what are the problems that are usually facing
related to job-order costing?
7. How do you solve these problems?
8. Can you give some tips to the local companies/business here in Butuan City
relation with their costing?
Research Title: “Benchmarking: A case study of Job Order Costing between Toyota
Butuan and LJ Corporation Butuan.”

Local Business: LJ Cars Butuan Corporation

1. What is the current costing method that is used by your company?
2. How does your company compute the cost flows in job order costing?
3. Do the company have any of the ff:
a. Sales Order
b. Job Cost Sheet
c. Material Requisition
d. Freight Ticket
e. Employee Time Sheets
4. Does your company have any technology integrated from
the job order costing system? If yes why?
5. Does it help in performing transactions efficiently?
6. How do you solve these problems?

Appendix B
(Letter for Consent)
Appendix B
(Documentation)
Multinational Company-Toyota Butuan
Local Company-LJ Cars Butuan Corporation

CURRICULUM VITAE
I. Personal Data
Name : Jaerenz C. Aton

Sex: : Female
Civil Status : Single
Date of Birth : January 11,2000
Father : Raul B. Aton
Mother : Emelinda C. Aton
Religion : Roman Catholic
Home Address : P-Matinud-anon, Brgy. Agusan Pequeno
Agusan Del Norte
Email Address : evergarden111@gmail.com
II. Educational Attainment

Elementary : Enfant Cheri Study Center Inc.
2008-2010
P-1A Upper Doongan Agusan Del Norte
: Butuan Central Elementary School
2010-2013
A.D. Curato Street Agusan Del Norte
Junior High : Agusan National High School
2013-2017
A.D. Curato Street Agusan Del Norte
Senior High : Agusan National High School
I. Personal Data
Name : Emmard Jay T. Bajao

Sex : Male
Date of Birth : November 8,2000
Father : Sixto Eric P. Bajao
Mother : Jacqueline T. Bajao
Home Address : Purok 6D Paradise Libertad, Butuan City
Email Address : emmardjay17@gmail.com

Elementary : Libertad Central Elemtary School
Libertad, Butuan City
Junior High : Libertad National High School

Senior High : Father Saturnino Urios University

I. Personal Data
Name : Julie Mae A. Bernaldez

Sex : Female
Date of Birth : May 19, 2000
Father : Julius R. Bernaldez
Mother : Mardenlor A. Bernaldez
Home Address : P6B Bliss Libertad, Butuan City
Email Address : bernaldezjuliemae283@gmail.com

Elementary : Bliss Elementary School
2012-2013
Bliss, Libertad, Butuan City
2016-2017
Balanghai Road, Libertad, Butuan City
Senior High : Libertad National High School
2018-2019
Balanghai Road, Libertad, Butuan City
I. Personal Data
Name : Marphine E. Bulaga

Sex : Female
Date of Birth : March 15, 2000
Father : Margarito C. Bulaga
Mother : Josephine E. Bulaga
Home Address : Ram City Homes,Libertad, Butuan City
Email Address : marphinebulaga08@gmail.com
Elemantary : Butuan Central Elementary School

2007-2013
A.D Curato Street, Butuan City

2013-2017
Senior High : Father Saturnino Urios University B.P Pueblos

2017-2019
J.C Aquino Avenue, Butuan City
I. Personal Data
Name : Angela Danes M. Bringas

Sex: : Female
Date of Birth : January 26, 2000
Father : Aldwin D. Bringas
Mother : Donabel M. Bringas
Home Address : Emily Homes P-1 Libertad, Butuan City
Agusan del Norte
Email Address : angeladanes26@gmail.com
Elementary : Father Saturnino Urios University
2007-2013
Libertad, Ambago, Butuan City
Junior High :Father Saturnino Urios University
2013-2017
2017-2019
I. Personal Data
Name : Thomas Vincent R. Buyan

Sex : Male
Date of Birth : January 20, 2001
Father : Leonardo L. Buyan
Mother : Eleanor R. Buyan
Home Address : Casa Rivera Exec. Homes Libertad Butuan City
Email Address : vincentrbuyan20@gmail.com
Elementary : Father Saturnino Urios University

2007-2013
Junior High : Father Saturnino Urios University

2013-2017

2017-2019
Butuan City
I. Personal Data
Name : Alyssa T. Juanico

Sex: : Female
Father : Marnilo C. Juanico
Mother : Rodalyn T. Juanico
Home Address : Brgy. 4, Buenavista, Agusan del Norte
Email Address : alyssajuanico571@gmail.com

Elementary : Buenavista Central Elementary School
2007-2013
Brgy. 3, Buenavista, Agusan del Norte
Junior High : Buenavista National High School
2013-2017
Brgy. Matabao, Buenavista, Agusan del Norte
Senior High : Buenavista National High School
2017-2019
Brgy. Matabao, Buenavista, Agusan del Norte
I. Personal Data
Name : Ma. Glory Mae G. Labasano

Sex: : Female
Civi Status : Single
Father : Fernando S. Labasano
Mother : Evangeline G. Labasano
Home Address : P-2 Brgy. Marcos Magallanes
Agusan Del Norte
Email Address : glorymaelabasano@gmail.com

Elementary : Magallanes North Elementary School
2007-2013
P-2 Brgy. Marcos Magallanes Agusan Del Norte
Junior High : Magallanes National High School
2013-2017
Senior High : Magallanes National High School
2017-2019
I. Personal Data
Name : Rembrandt Ken Ledesma

Sex: : Male
Date of Birth : May 22,2001
Father : None
Mother : Eunice G. Ledesma
Home Address : P-8 Brgy. 14 Limaha, Butuan City
Agusan del Norte
Email Address : ledesmarembrandt2@gmail.com

Elementary : Ong Yiu Central Elementary School
2006-2010
Butuan City
2011-2015
Butuan City
Senior High : FSUU, BP. PUEBLOS
Butuan City
2017-2019
I. Personal Data
Name : Teena May D. Mendoza

Sex: : Female
Father :
Mother : Lalaine D. Mendoza
Home Address : Brgy.5, Nasipit, Agusan del Norte
Email Address : aneetanne@gmail.com

Elementary : Nasipit Central Elementary School
2007-2013
Brgy. 6, Nasipit, Agusan del Norte
Junior High : Saint Michael College of Caraga
2013-2017
Brgy. 4, Nasipit, Agusan del Norte
J.C. Aquino Avenue, Butuan City
2017-2019
I. Personal Data
Name : Jenny Louise S. Mission
Sex: : Female
Date of Birth : August 11, 2000
Father : Jose C. Mission
Mother : Leni S. Mission
Home Address : P-1 Brgy. Pigdaulan, Butuan City, Agusan Del Norte
Email Address :jennymission8@gmail.com

Elementary : Butuan Central Elementary School
2007-2013
A.D. Curato Street, Butuan City
2013-2017
A.D. Curato Street, Butuan City
San Francisco St., Cor. J.C. Aquino
Butuan City
I. Personal Data
Name : Gian Clyde L. Monzor

Sex : Male
Date of Birth : October 6, 2000
Father : Teresito S. Monzor
Mother : Ludy L. Monzor
Home Address : Guingona 7th Street, Butuan City
Email Address : monzorgian6@gmail.com
Elementary : Maon Elementary School

2007-2013
Maon, Butuan City

2013-2017
Senior High : Father Saturnino Urios University B.P Pueblos

2017-2019
J.C Aquino Avenue, Butuan City
I. Personal Data
Name : Trixia B. Nemeño

Sex : Female
Father : Jose Alberto S. Nemeño
Mother : Lilibeth B. Nemeño
Home Address : P-13 Papaya San Vicente, Butuan City
Email Address : trixianemeno@gmail.com
Elemantary : San Vicente Elementary School

: 2007-2013
: San Vicente, Butuan City
Junior High : San Vicente National High School

: 2013-2017
: San Vicente, Butuan City
I. Personal Data
Name : Gunther D. Pancipanci

Sex: : Male
Date of Birth : August 24, 1998
Father : Fiel D. Pancipanci
Mother : Gina D. Pancipanci
Home Address : Cinderella, Villakanangga, Butuan City
Agusan del Norte
Email Address : Gpancipanci24@gmail.com

2006-2010
Butuan City
2011-2015
2017-2019
I. Personal Data
Name : Kaye Micole A. Quiño

Sex: : Female
Date of Birth : July 25, 2000
Father : Sofronio R. Quiño
Mother : Genalyn A. Quiño
Home Address : P-5A Bonbon, Butuan City
Agusan del Norte
Email Address : Kmquiño99@gmail.com

Elementary : La Trinidad Elementary School
2006-2010
Bonbon Butuan City
2011-2015
2016-2019
I. Personal Data
Name : Ryan Roy O. Raz

Sex : Male
Date of Birth : August 9, 2001
Father : Roy C. Raz
Mother : Roselyn O.Raz
Religion : Born Again
Home Address : P-5, Brgy. Villa Kananga Butuan City
Email Address : ryanroyraz@gmail.com

: 2007-2013

: 2013-2017

: 2017-2019
I. Personal Data
Name : Marie Klaire D. Wahing

Sex: : Female
Date of Birth : September 5, 2000
Father : Ely T. Wahing
Mother : Vilma T. Dacanay
Home Address : P-1, Brgy. Sto. Rosario, Magallanes
` Agusan Del Norte
Email Address : marieklairewahing@gmail.com

Elementary : Magallanes Central Elementary School
2007-2013
P4 Brgy. Poblacion, Magallanes Agusan Del Norte
Junior High : Magallanes National High School

2013-2017
P6 Brgy. Sto. Niño, Magallanes Agusan Del Norte
Senior High : Magallanes National High School
2017-2019
P6 Brgy. Sto. Niño, Magallanes Agusan Del Norte
I. Personal Data
Name : John Romauld M. Zaldivar

Sex: : Male
Date of Birth : February 7,2000
Father : Gerwin T. Zaldivar
Mother : Lyndie M. Zaldivar
Home Address : Purok 4C, Poblacion, Tagbina Surigao del Sur
Email Address : zaldivarjr50@gmail.com

Elementary : Tagbina Central Elementary School
2012-2013
Tagbina Surigao del Sur
Junior High : Tagbina National High School
2016-2017
Tagbina Surigao del Sur
2018-2019
Butuan City

Job Order Costingg Researrch Final

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Job Order Costingg Researrch Final

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Chapter 1

Statement of the Problem

Significance of the Study

Scope and Limitations

Accumulation using Job Order Costing System it accumulates materials, labor,

Allocation an act or process of allocating, assigning or distributing an amount or

Aptitude one’s potential, natural ability or skill to do work whether developed or

Drudgery means dull work or hard menial.

Job-Order Costing is a system in which it is the assigning and accumulating jobs

REVIEW OF RELATED LITERATURE

A sales order, explained as the internal document which explains the sale,

Job Cost Sheet

Material Requisition Form

It is a source document that the production department uses to request materials

Materials-requisition is the important stage in supply chain. This could result in

Across many various business verticals as well as those manufacturing sectors

Employee Time Sheets

As a company grows, it can be more difficult to keep track of what everyone is up

Bar code technology can be used to record labor time-reducing the drudgery in

Managing Diversity with technology Andersen Windows of Bayport, Minnesota,

Technological advances enable small businesses to work more efficiently in a

Technology has important effects on business operations. No matter the size of

Technology is playing an increasing role in aiding the management of jobs and in

Companies in the white-collar sector of business, including law firms, accounting

Manufacturing companies incorporate job order costing as a means of controlling

IKEA is a European multinational group that designs and produces ready-to-

Construction projects require a range of inputs, from labor to various types of

Several of the accounting firms actively involved in bankruptcy audits have

However, job-costing has several shortcomings. The method requires extraneous

The Performance Based Studies Research Studies Group (PBSRG) at Arizona

According to Bangladesh Open University, Job-order costing has the following

A company that has a large number of jobs that vary in size, time, or effort may

The researcher used the Qualitative-correlational method, which focuses on

Research Environment Population and Sample

The researchers had come up with a self-administered interview questionnaire and

Data Gathering Procedure

PRESENTATION, ANALYSIS AND INTERPRETATION

Job order costing system

Question #3: Did the company have any of the following:

Analysis and Interpretation: The company is hands on on every party or their

Question #6: How do you solve these problems?

Analysis and Interpretation:

Toyota is widely known as an automative manufacturer which specializes in job order.

Analysis and Interpretation: Toyota company manages their production and

Question #3: Does the company have any of the ff.?

a. Please indicate what type of technology integrated system.

Analysis and Interpretation:

A. Toyota manages their costing through a technology integrated system called

Analysis and Interpretation:

Question #7: How do you solve these problems?

Analysis and Interpretation:

Analysis and Interpretation:

Toyota company advices small businesses to try system generated costing

Based on the analysis, the following results were noted.

1. What are the practices in the application of Job Order Costing to

Managers of the company. The managers must be careful in choosing a costing

Other business establishments. As well as what other company’s concern, other

Juneja, P. (2015). Advantages of Job order Costing. Retrieved from

Wilkinson, J. (2013). Sales Order. Retrieved from https://strategiccfo.com/sales-order/

Epay Systems. (2017). 5 Reasons Companies Should Implement Fingerprint Time

Ahmed, A. (2019). Benefits of Technology in Business. Retrieved from

Campbell. (2015). WHY IS TECHNOLOGY IMPORTANT IN BUSINESS?. Retrieved

Juneja, P. (2015). Consequences of Incorrect Job Order Costing. Retrieved from

Smith, P. (2019). Top 5 Financial Challenges Facing Small Businesses in 2019.