Chapter 19, Problem 7BTN

Refer to the chapter opener regarding Neha Assar and her company, Neha Assar. All successful businesses track their costs, and it is especially important for start-up businesses to monitor and control costs.

Required

1. Assume that Neha Assar uses a job order costing system. For the basic cost category of direct materials, explain how Neha's job cost sheet would differ from a job cost sheet for a manufacturing company.

2. For the basic cost categories of direct labor and overhead, provide examples of the types of costs that would fall into each category for Neha Assar.