What are the two major steps in the flow of costs for a job cost system?

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2026-04-07 15:30

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In a job cost system, the two major steps in the flow of costs are the accumulation of costs and the allocation of those costs to specific jobs. First, costs are accumulated through direct materials, direct labor, and manufacturing overhead incurred during production. Then, these accumulated costs are allocated to individual jobs based on the resources consumed, enabling accurate tracking of expenses and profitability for each job.

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