A brief overview of job costing
Summary :
Table of Contents
- Introduction
- Job costing in general
- Applicability of job costing
- Features of job costing
- Components of job costing
- Other important aspects of job costing
- Job costing evaluated
- Advantage
- Disadvantage
- Conclusion
Abstract
job costing is one of the methods of counting costs & is used when job orders are undertaken in a factory or a workshop or contracts are taken out to build houses, construct roads, bridges etc. Many companies manufacture goods against orders. They are what is known as "jobbing type" industries and generally include printers, machine tools manufacturer's job foundries and general engineering workshops. The main purpose of job costing is to ascertain profit or loss on each job undertaken. Since costs are estimated before accepting a job and actual costs are compared with estimated costs, it is also possible to ascertain whether the estimate was correct and/or cost incurred was reasonable. This helps in improving efficiency in operation as well as in revising estimates for future quotation if necessary
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