ECONOMICS

Detailed explanation-1: -Printers are performing printing jobs for different clients. Each printing job is a unique job which requires different set of specifications. Cost of each job depends on the kind of material and labor utilized. Therefore, it is required for printers to follow the job costing method.

Detailed explanation-2: -Printing industry is a specific example of this situation and therefore it is proposed to use ABC for job costing and pricing.

Detailed explanation-3: -Job costing is used to accumulate costs at a small-unit level. For example, job costing is appropriate for deriving the cost of constructing a custom machine, designing a software program, constructing a building, or manufacturing a small batch of products.

Detailed explanation-4: -For example: Say a customer bought shoes personalized with their name written on the sides and shoelaces made of cotton, rather a basic nylon material. Since this order is unique, a business would use job order costing to create a unique price to charge the customer for their custom-made shoe.

Detailed explanation-5: -Unit Costing This method applies to businesses that produce a single product. In this method the total cost is divided by number of units to derive per unit cost. This is mostly used in industries dealing in-Cement manufacturing, paper manufacturing, textiles.