ECONOMICS

Detailed explanation-1: -Specific order costing is the category of basic costing methods applicable where the work consists of separate jobs, batches or contracts each of which is authorized by a specific order or contract. The main sub-divisions of specific order costing are: job costing, contract costing and batch costing.

Detailed explanation-2: -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.

Detailed explanation-3: -The main costing methods available are process costing, job costing, direct costing, and throughput costing. Each of these methods applies to different production and decision environments.

Detailed explanation-4: -Job costing and process costing are the two basic methods of costing. Job costing is suitable to industries which manufacture or execute the work according to the specifications of the customers. Process costing is suitable to industries where production is continuous and the units produced are identical.