C3 Methods of Costing

Unit costing
costing which can be developed in industries having continuous production, the units of which are identical and standardised.

Job Costing
in which each job is taken as cost unit or a cost centre and it is appropriate for jobbing factories, assembling units etc.

Batch Costing
Extension of Job costing. A batch may represent a number of small orders passed through the factory in batch. Each batch is treated as a cost unit and costs are ascertained separately. it is useful for biscuit, cloth industries.

Contract Costing
Costing in which cost of production is ascertained for each contract, and it is applied to contract and erection industries.

Process Costing
Costing in which the product passes through a series of processes till is completed. and cost is ascertained for each process. it is suitable for industries like chemical, coal, soap. leather, timber etc.

Operating Costing
Costing which is used to ascertain the cost of services rendered. it is suitable for hospitals, hotels, transport, power supply industries.