Explore BrainMass

Explore BrainMass

    Type of costing method for a small business of construction

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What type of costing method would you choose for the small business of construction. Why?

    © BrainMass Inc. brainmass.com June 4, 2020, 1:44 am ad1c9bdddf
    https://brainmass.com/business/accounting/type-of-costing-method-for-a-small-business-of-construction-416934

    Solution Preview

    For a small construction business, a job costing method would be the most useful, informative and accurate for purposes of measuring gross profit for a business.

    In a job cost system, each order or job is assigned a specific identification number and all direct costs of that job are tagged to the id number.

    Here are a couple of examples to demonstrate:

    1. Your company repairs and installs HVAC (heating and ...

    Solution Summary

    The 271 word solution explains the concepts and presents examples to demonstate an appropriate method.

    $2.19

    ADVERTISEMENT