i. Difference between job costing and batch costing
In job costing individual products or services are calculated out according to customer?s
specification
In batch costing the individual products are combined together to form the number of units
required by the customers which is sold us a package. The production cost for this package
(batch) is normally computed by taking into account the direct national cost, direct labour and
production, selling and administration cost are normally added where an organization feel
necessary to include in the total cost
A mark –up can be added so as to arrive at the selling price.
ii. Features of the job costing
i. Job costing system accumulates all the cost relating to the job done by the company
ii. Each job in the job costing system is given a unique number that identifies the job.
iii. Each activity costs to date for that activity along with budgets estimates
iv. Job costs reports can be used to compare the actual expenditure against the budgeted
amount to compare or closes the progress of the job
v. Direct purchases are charged against the activity
vi. It is possible to charge the cost of an inventory against an activity
marto answered the question on February 21, 2019 at 07:14
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