Question

Question: What is the purpose of a job cost record?

Short answer

Answer:

A job cost record is a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual job and allows the company to track the cost of individual jobs.

Step-by-step solution

Accounting records

Accounting records mean the record of assets, liabilities, cost incurred, and other monetary transactions. It is maintained to prepare the financial statements of the company.

Cost Record

Job cost record is prepared by an organization to aggregate the cost of direct material, labor and overhead applied to the specific job. It is a source document for job costing system.