Your discussion does not sufficiently meet the requirements. The discussion needed to show "how would that service provider determine the full cost" of their services using a job order approach. What would be the job costs and how would they relate to using job costing?
I am a house-enthusiast individual, which makes me engage with real- estate agents from time to time. As service providers, the job costing system can enhance their service and improve accumulated revenues. For instance, it can be implemented by determining the kind of job. As the agents take a person to different types of homes, they can identify the job type. Suppose I want to find a house in Los Angeles. In that case, the price can be different from finding a house in Colorado since Los Angeles is a densely populated city, and hard to find a house. At the same time, Colorado can be more comfortable due to its rural nature. It offers the chance to engineer the prices not to affect some customers but also maximize on profit due to customers specification (Greenberg & Schneider, 2010).
On the other hand, it can make receiving an order more efficient since clients can describe their specifications whereby the real estate agent can provide a quotation for the job. It is systematic and effective for the agent to handle numerous orders and client specifications. Also, during the process of executing the task, jobs can be identified by the order number and have a clear approach to the process of completing the task.
References
Anta, D., Iacob, M., & Vlaicu, U. (2010). JOB-ORDER COSTING VERSUS PROCESS COSTING. Retrieved 27 January 2021, from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.523.3194&rep=rep1&type=pdf.
Greenberg, R., & Schneider, A. (2010). JOB ORDER COSTING: A SIMULATION AND VEHICLE FOR CONCEPTUAL DISCUSSION. Academy Of Educational Leadership Journal, 14(3), 39-53. Retrieved 27 January 2021, from https://search.proquest.com/openview/
This is another discussion that the Professor liked:
In 2020, I started to provide a service for custom balloon decorations for events. To cost out the jobs I would first determine the cost of supplies needed for the the specific project. Supplies would include a variety of balloons in different sizes and colors and the support for the balloon design. I would also have to determine how many hours of prepartion, set up and tear down was required to pull off the event. For example, I was hired to customize a kids Monster Jam birthday party. I created one backdrop arch and a few columns along with providing decor including tablecloths, goodie bags, etc. The job costing went as follows:
Balloons (5 colors, 50 per pack): 6 x $6= $36
Goodie Bags (12): $13
Snacks: $15
Party favors: $35
Other supplies
Tableclothes: $12
Giant tires: $25
Plates, Nakins, Cutlery: $22
Backdrop: $20
Labor: $20x 8 hours= $160
Total: $338
I estimated all of the expenses before the job, what I did not take into account was the taxes for purchasing the supplies and my labor hours that I underestimeted. Overall the event turned out nice but I relaized my profit margin was low because I had to pay for the additional supplies needed to pull of the event.
His response:
Christina:
You provided a very good example of how job costing can be effectively used for this service. I believe there may have been a few other hidden costs, such as fuel to get to and from the event.
Bob Delorme
Alpha35
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