ECONOMICS

Detailed explanation-1: -Job costing is method of recording costs for each job. Each job is categorized as a separate unit and cost is accordingly apportioned on that. Each job is a cost unit.

Detailed explanation-2: -Cost unit, also known as the cost per unit, the cost of goods sold or the cost of sales, is the amount of money that a company invests in manufacturing a single unit of a saleable product. The cost of unit calculation appears in the company’s financial statement.

Detailed explanation-3: -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-4: -A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service. Unit costs are synonymous with cost of goods sold (COGS). This accounting measure includes all of the fixed and variable costs associated with the production of a good or service.

Detailed explanation-5: -Job costing deals with discrete systems. When products are made continuously, a process costing system emerges. Unit costing is applicable to both systems. Process manufacturing creates other products which are called joint products.