Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.

Related MCQs

• 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.
• 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.
• Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.
• In job costing each job is given a unique:
• A job costing system is usually based on absorption costing principles, and in addition a cost is included for non-production overheads.
• It is possible to use a job costing system to control the costs of an internal service department, such as the maintenance department and the printing department.
• Process costing provides a system of costing where the following characteristics occur. Identify which of the following are correct:
• If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
• If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are