Q.Define Job Costing? What are its features?
Job costing is a method of ascertaining cost in those industries in which goods are manufactured or services rendered against specific orders form customers.
Each work order or job order accepted is a cost unit
Costs are ascertained separately for each job or work order undertaken.
The purpose of hob costing is to ascertain the cost and profit on each individual job.
Examples:
printing press, repair, workshops, general engineering companies, interior decoration etc.
Salient features of job costing are:
1. production is always against customers orders and for stocks
2. each job has its specialty
3. each job undertaken is a cost unit
4.separate job cost sheet is prepared for each job in order to ascertain profit/loss on the job.
5.there will be no uniformity in flow of production between departments.
Job costing is a method of ascertaining cost in those industries in which goods are manufactured or services rendered against specific orders form customers.
Each work order or job order accepted is a cost unit
Costs are ascertained separately for each job or work order undertaken.
The purpose of hob costing is to ascertain the cost and profit on each individual job.
Examples:
printing press, repair, workshops, general engineering companies, interior decoration etc.
Salient features of job costing are:
1. production is always against customers orders and for stocks
2. each job has its specialty
3. each job undertaken is a cost unit
4.separate job cost sheet is prepared for each job in order to ascertain profit/loss on the job.
5.there will be no uniformity in flow of production between departments.
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