What kind of Job Costing

Assessment 1: Written or Oral Questions

1.     Describe how legislation impacts the role of an individual working in job costing.

 In an order-based costing system (job order costing or job costing), production costs are accumulated for each separate job. An order is an output that is identified to fulfill a particular customer order or to refill an inventory item. In order for the details of an order-based cost calculation according to the required business, there must be important differences in the cost per unit of an order with another order. The impact is that there are a number of new laws and regulations that have emerged as a response to the effects of deteriorating economic conditions that affect the accounting profession. Auditors face increasingly complex risk environments both global and local. Audit report users are more aware of the legal responsibility of the auditor that allows the auditor to be prosecuted if the audit report issued is detrimental to the user of the audit report

2.     What are internal controls and what are the basic principles involved?

Internal control is a plan, method, procedure, and policy designed by management to provide assurance that meets the qualifications for achieving operational efficiency and effectiveness, a perfect level of detail in financial reporting, safeguarding assets, compliance / compliance with laws, policies and other regulations. The basic principles involved are the formation of responsibilities, segregation of duties, documentation procedures, physical control, independent internal verification, human resource control.

3.     What is involved in job costing?

The things involved in the costs are the cost of raw materials, labour costs and overhead costs.

4.     What are possible conflicts of interest, how might they arise and why should such conflict be avoided?

A belief that the aspirations of the conflicting parties cannot be achieved simultaneously. Even if there is a situation when someone's personal interests that work for the company interfere with, or appear to interfere with, the company's overall interests. A conflict of interest arises when an employee, manager, or director of a company takes actions that interfere with his ability to carry out his official duties. Conflicts can occur in a variety of circumstances and at various levels of complexity. Conflict is a dynamic duo. Conflicts can arise due to:

·         Individual differences, including differences in the establishment and feelings.

·          Different cultural backgrounds to form different individuals. Even someone will most likely be influenced by the patterns of thought and the establishment of the group because in differences in cultural background there is the nature of "Ethnocentrism" or considers the culture to be the most correct so that it can trigger conflict.

·          Differences in interests between individuals or groups, including those related to the economic, political and social fields. It is better to avoid conflicts so that effective communication systems and implementation can be created, can prevent destructive conflicts before they occur, and should set standard rules and procedures especially those concerning employee rights, superiors have an important role in resolving emerging conflicts, by creating a climate and working atmosphere harmonious, then formed a team work and good cooperation between groups / work units and all parties should be aware that all units / echelons are a chain of mutually supportive organizations, no one feels the greatest

5.     What is a budget and how does it provide control in job costing?

A budget is a plan that is stated quantitatively, usually in units of money with a certain period of time, usually one year. In addition, it can also be a sum of money spent in a certain period to carry out a program. There is no single company that has an unlimited budget, so that the budgeting process becomes important in a planning process. Budget preparation is basically the process of determining the role of each manager in implementing the program. The procedure for providing control in the work of costs is: estimating work, making an estimate of the budget, recording data on the actual work, processing data, recording information related to benchmarking and analysing the results, taking action if excess inventory.

6.     What role do Standard Operating Procedures (SOP) have in job costing?

SOP is a guideline containing standard operating procedures in an organization that are used to ensure that every decision, step, or action, and use of processing facilities are carried out by people within an organization, have been running effectively, consistently, standards and systematically. play a role as Streamlining the duties of officers / employees, or teams / work units, legal basis if deviations occur, Know clearly the obstacles and easily tracked, Directing officers / employees to be equally disciplined in working, guidelines in carrying out routine work.

7.     Why do organizations establish filing systems and practices should they employ?

 The purpose of the Organization to build an archiving system is to organize, compile and form files according to the type and usefulness of archives for work purposes. In this filing include preparing the completeness or facilities as well as the placement of files in the storage place. In addition, arranging files (arranging), arranges the files according to archival classification patterns that have been made. Archive storage here is intended as a sequence of work steps certain ways that are carried out by the storage officer or archive storage active from the receipt of the completed letter, storage until placing the archive in a filing cabinet. Archive storage contains three main elements: storage, placement and rediscovery. So the archive is not just to be stored just like that, but it needs to be regulated how it is stored, how the procedure is, what steps need to be followed. So that if needed, the archive can be easily and quickly discovered. Practices that must be done so that documents in the filing system are quickly found by separating documents with the alphabetical system on the document, the subject matter (subject), writing down the date (chronological) system and writing down the system number in the document.

8.      Why is data storage important and why should data be protected?
Because one day the data will be needed again so that it needs an archiving system in the organizational structure in the company. All data in the company constitutes privacy and may not be known by third parties so that it must be protected.