How is overhead allocated to individual jobs? How does job costing information affect managers’ incentives and decisions?

Job Costing

How are costs assigned to customized goods and services?

• Q2: How is overhead allocated to individual jobs?
• Q3: How does job costing information affect managers’ incentives and decisions?
• Q4: How are spoilage, rework, and scrap handled in job costing?
• Q5: What are the quality and behavioral implications of spoilage?