Job costing data can be utilised for estimating the production costs of specific jobs or lots of production. If, for example, a customer places an order with the firm to manufacture a sepcific type of...

Job costing data can be utilised for estimating the production costs of specific jobs or lots of production. If, for example, a customer places an order with the firm to manufacture a sepcific type of product that has unique characteristics different from the other products manufactured by the company, a job-order cost system should be utilized to accumulate the production costs associated with this product. In other words, job costing system provides the basis for determining the ‘bidding’ price for similar jobs that will be considered in the future.