A business inventory strategy.
Involves the calculation of costs involved in a construction “job” or the manufacturing of goods done in discrete batches. These costs are recorded in ledger accounts throughout the life of the job or batch and are then summarized in the final trial balance before the preparing of the job cost or batch manufacturing statement.
Typically small manufacturing businesses that handle job production, that is, custom or semi-custom manufacturing processes such as small to medium-size customer orders or batch jobs Job shops typically move on to different jobs (possibly with different customers) when each job is completed. By the nature of this type of manufacturing operation, job shops are usually specialized in skill and processes.