Question

Question : Reflections on what you learned from the individual assignment, including the relevance of
job costing system to businesses. What insights did you gain and what had you learnt from it?

Answer 1

Job costing is mainly appicable where the work consists of separate contracts,jobs or batches each of which is authorised by specific order or contract

According to this method costs are collected and accumulated according to jobs, each is considered as separate entity for the purpose of costing and it is carried out for the purpose of ascertaing cost of each job and takes into account the cost of materials, Labour and over head etc.,

Relevance of Job costing

1 When jobs are executed for different customers according to their specifications

2. when no two orders are alike and each other/ jobs need special treatment

3. where the work in progress differs from period to period on the basis of the number of jobs in hand.

Insights gain from Job costing

1. The details of cost of material,labour and overhead for all job is available to control

2. profitability of each job can be derived

3. It facilitates production planning

4. Budgetary control and standard costing can be applied in job costing

5.spoilage and detective can be identified and responsibilites can be fixed accordingly.