ECONOMICS

Detailed explanation-1: -Job Order Costing: This method is adopted in job order industries like ship building, machine manufacturing, fabrication work etc. It is concerned with determining the cost of each individual job or contract.

Detailed explanation-2: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.

Detailed explanation-3: -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-4: -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-5: -5] Contract Costing These methods of costing are mainly used for construction contracts, like the construction of complexes, highways, bridges, dams etc. As you can see there are a lot of similarities between job costing and contract costing.