Under job costing, the cost of inventory in finished goods:

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Under job costing, the cost of inventory in finished goods includes actual direct materials, direct labour, and allocated factory overhead costs. This means that all direct and indirect costs associated with producing a specific job are included in the cost of finished goods inventory. This information is useful in long-term decision making as it helps in determining the profitability of each job and the pricing of the product.

Under Job Costing, the Cost of Inventory in Finished Goods