In a costing system, a job account is similar to a work in progress account, except that it is for one job only. In a company that specialises in jobbing work, the work in progress account is the total of all the individual job accounts.

Related MCQs

• Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.
• When there is opening work in progress there are two types of cost on the debit side of the account. These are the costs that were incurred last period and brought forward as work in progress and the costs that were incurred in the current period.
• In Job costing a cost is calculated for each individual job, and this cost can be used to establish the profit or loss from doing the job.
• The job costing method can therefore be applied in costing batches. The only difference is that a number of items are being costed together as a single unit, instead of a single item or service.
• The usual method of fixing prices in a jobbing concern is cost plus pricing.
• A job costing system is usually based on absorption costing principles, and in addition a cost is included for non-production overheads.
• Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.
• Process costing provides a system of costing where the following characteristics occur. Identify which of the following are correct:
• Process costing is used when output is produced in a continuous process system, and it is difficult to separate individual units of output.
• In job costing each job is given a unique: