ECONOMICS

Detailed explanation-1: -Scope of specific order costing is very wide and includes Job, Batch and contract costing. Explanation: According to CIMA, “the basic costing approach is suitable in which the task is divided into different contracts, tasks, or batches, which are each approved by a special order or contract."

Detailed explanation-2: -Contract costing is a particular order costing that applies if work is conducted to the customer’s special requirements and each order is of extended duration. The task is often construction-related, and the process is comparable to job costing in general.

Detailed explanation-3: -methods used by these types of businesses. Specific-order costing is a costing process that assesses the individual. costs of performing each particular job. It is used in organisations where different products are manufactured and also in service organisations where the cost of each service provided is required.

Detailed explanation-4: -Job costing provides the base for determining the cost of similar jobs to be undertaken in future as a part of future planning. Helps in managing and controlling costs, by comparing the actual costs with the estimated cost. In short, the calculation of variances.

Detailed explanation-5: -Job costing is the method of costing which comes under specific order costing. This method is used to affix the cost according to the job or the work type separately.