ECONOMICS

Detailed explanation-1: -According to ICMA London, specific order costing is that form of specific order costing that applies where work is undertaken to customers’ special requirements. Explanation: Specific Order Costing method is implemented for the made-to-order type of products which relies completely on the specification of customers.

Detailed explanation-2: -According to ICMA London, “job costing is that form of specific order costing which applies where work is undertaken to customer’s specific requirements and each order is of comparatively of short duration.” Under this method of costing, each job is considered to be a distinct cost unit.

Detailed explanation-3: -Job costing is a method of costing applies to a specific job not on the manufacturing process. Each job is a specific and unique, hence cost pertaining to the job is recorded in reference to that job only.

Detailed explanation-4: -Job Costing: It is applicable where work is undertaken to customer’s special requirements and each order is of comparatively short duration.

Detailed explanation-5: -Service Costing – This method is used where services are provided such as hotels, cinemas, hospitals, transport, electricity companies etc.