Definitions

job-order co-sting

Job order

The Job Order, is an internal document extensively used by projects-based, manufacturing, building and fabrication businesses. A job order may be for products and/or services. In a manufacturing environment, a job order is used to signal the start of a manufacturing process and will most probably be linked to a bill of material. Hence, the job order will probably state :-

(a) the quantity of the product to be manufactured, built or fabricated
(b) the amount of raw material to be used, its price and amount
(c) the types of labour required, rate (per hour or per unit) and amount
(d) the machine utilisation for each machine during the routing process, its rate and amount

In a service environment, a job order can be the equivalent to a work or service order where the job order records the location, date and time the service is carried out and the nature of service that was carried out. The type of personnel (e.g. his job position) may also be listed on the job order. A rate (e.g. $/hr, $/week) and also the total amount of hours worked and total value is also shown.

See also

Sales Order

Work Order

Order Management System

External links

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