The primary objective in job order costing is to determine the cost of materials, labor, and factory overhead used to produce a specific order or contract. Cost estimates are made when the order is taken, and the job order procedures are designed to reveal costs as the order goes through production, thereby giving an opportunity to control costs.

Question

Provide an example of a company that is using or could use Job Order Costing. What are the benefits to the organization to use Job Order costing? Are there are disadvantages? Explain.