[Verse 1] Manufacturing floors buzz with creation's dance Each product born from calculated chance Direct materials flow like crimson threads Weaving through the fabric where precision spreads Steel and plastic, rubber and glass Every component logged as moments pass [Chorus] Track the triple crown - materials, labor, overhead assigned D-M-L plus M-O-H, keep the formula in mind Job sheets capture every cent that flows into the frame Costing systems paint the truth behind each product's name [Verse 2] Direct labor clocks the human touch Welders, assemblers, crafters and such Hours multiplied by wages earned Into job accounts these costs are turned But indirect expenses lurk between Factory rent and supervisors seen [Chorus] Track the triple crown - materials, labor, overhead assigned D-M-L plus M-O-H, keep the formula in mind Job sheets capture every cent that flows into the frame Costing systems paint the truth behind each product's name [Bridge] Allocation bases spread the load Machine hours, labor hours, different roads Predetermined rates smooth out the peaks Before the month-end reconciliation speaks Applied versus actual, variance tells If estimates rang true or warning bells [Verse 3] Work-in-process holds the growing sum Finished goods await when building's done Cost of sales reflects the final tally Custom orders marching through the valley Each unique creation bears its weight Profitability sealed by costing's fate [Chorus] Track the triple crown - materials, labor, overhead assigned D-M-L plus M-O-H, keep the formula in mind Job sheets capture every cent that flows into the frame Costing systems paint the truth behind each product's name [Outro] From requisition to completion's bell Job costing systems guard the story well
← Cost Classification Fundamentals | Process Costing Systems →