Method of Costing Job Costing its Features,Advantage,Disadvantage and Application.

 Costing is an important function of organization. It is the process of classifying, recording and allocating resource to determine the actual expenditre to produce any product or service.

There are three elements of Cost. These elements are Material, Labour, expenses.

There are many methods of Cost. These methods are Job Costing, Batch Costing, Contract Costing, Operating Costing, Process Costing, Multiple Costing, Uniform Costing and Unit Costing.

1.Job Costing- It is the first type of Costing.There are many jobs involve in production process of any product or service. The process in which we ascertain for each job then calculate total expenditure this process is called Job Costing.

In other words we can say that the process of identifying the total expenditure for producing any product or service according to jobs that are involved in production process this process is called Job Costing.

Features of Job Costing-

1.Each job is accumulated separately on cost basis.

2.Each job is variable from each other according to cistomers so it is variable from each other.

3.Each job needs a special care.

4.It requires a special cost sheet for every job.

5.It is not a continuous activity.

6.Each job understands as a cost unit.

Advantages-

1.It helps in production planning.

2.It helps in making budget.

3.It helps to measure profit/loss according to job.

4.It helps to measure resource utilisitation.

5.It helps to cost control because it records expenditure more accurately.

6.It helps to analysis the cost of material labour and overheads according to job.

Disadvantage-

1.It needs more time energy and effort,

2.It possess more chance to mistake.

3.To compare among all jobs is a difficult task.

4.It is based on historical costing approach.

5.It is not very useful in cost control process.

Application-

1.Printing.

2.Repair car truck bus.

3.To construct bridge,building

4.Hardware industry.

5.Architecture.

6.Interior decoratoration.