BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Job costing is an accounting method designed to help you track the cost of individual projects and jobs. It involves looking at direct and indirect costs, and it’s usually broken into three specific categories: labor, materials and overhead.

Detailed explanation-2: -Job costing pools expenses as one of three types of costs: direct materials, direct labour, and overhead. As a general rule, costs are considered work in process until the goods are completed; once the goods are completed, the costs are transferred to cost of goods sold.

Detailed explanation-3: -The difference between job costing and process costing is that job costing is used for custom products, and process costing is used for mass-produced items that are the same or similar. Job costing tracks all direct and indirect costs for each item or project.

Detailed explanation-4: -Job costing is used when a business entity carries out tasks or jobs to meet specific customer orders. Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.

Detailed explanation-5: -Job costing (known by some as job order costing) is fundamental to managerial accounting. It differs from Process costing in that the flow of costs is tracked by job or batch instead of by process.