Management Notes

Reference Notes for Management

Job Costing – Definition, Features, Advantages and Limitations | Cost Accounting

Job Costing

Job Costing

In job costing, costs are accumulated separately for each job or work order undertaken by an organization. The job order method of cost accounting is used in industries which manufacture products or render services against specific orders. According to the job costing system, an order, lot or batch of product can be taken as a cost unit, i.e. a job. The job costing method is a method of costing in which the cost units can be identified separately and need to be separately costed. An important purpose of job costing is to gather all the costs incurred during the course of a job.

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