Management can use job cost information to control costs on future jobs. True or False?

Management can indeed use job cost information to control costs on future jobs. Job cost information provides a detailed breakdown of costs associated with specific projects, including materials, labor, and overhead. By analyzing this data, management can identify cost trends, variances, and areas where efficiencies can be gained or expenditures reduced. This analysis helps in setting accurate budgets for future jobs and in developing strategies to optimize resource allocation.

Furthermore, this information serves as a basis for forecasting and decision-making. When management understands how costs were incurred on past jobs, they can make informed predictions about future projects, which enhances overall budgeting accuracy and financial planning. Thus, using job cost information as a tool for cost control is a key aspect of good managerial accounting practices and contributes to improved operational efficiency.