Explanation:

Job costing is a cost allocation method used by companies that make custom products. Imagine a cabinet maker who makes custom cabinets for homes. Each cabinet is custom built based on measurements made inside the customer’s home. All jobs require different amounts of material, labor, and overhead. Therefore, each job has a unique total cost. Companies use job cost sheets to record the cost of materials used on the job.

A job cost sheet is a compilation of the actual costs of a job. The report is compiled by the accounting department and distributed to the management team, to see if a job was correctly bid. The sheet is usually completed after a job has been closed, though it can be compiled on a concurrent basis