ECONOMICS

Detailed explanation-1: -1. Job Costing: Under this method costs are collected and accumulated for each job or work order or project separately. Each job can be identified separately and hence becomes essential to analyze the costs according to each job.

Detailed explanation-2: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.

Detailed explanation-3: -Process costing is a method of costing under which all costs are accumulated for each stage of production or process, and the Page 2 2 cost per unit of product is ascertained at each stage of production by dividing the cost of each process by the normal output of that process. 1.2.

Detailed explanation-4: -In job order costing, costs accumulate by individual jobs. Typically, job costing includes customer billing to outline the exact cost of each step in the process of a particular job or order.

Detailed explanation-5: -Job costing is a costing method used to determine the cost of specific jobs, which are performed according to the customer’s specifications. It is a basic costing method which is applicable where work consists of separate projects or contract jobs.