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.

Related MCQs

• Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.
• 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.
• If it is assumed that all losses in process occur at the end of the process, units of abnormal loss are costed in exactly the same way in the as units of finished output.
• A separate record must therefore be maintained to show the details of individual jobs. Such records are often known as job cost sheets or job cost cards.
• A job costing system is usually based on absorption costing principles, and in addition a cost is included for non-production overheads.
• 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:
• 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.
• A job is a cost unit which consists of a single order or contract.