ECONOMICS

Detailed explanation-1: -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-2: -The Specific Costing Method is intended for use with high value items and those that are produced or purchased one at a time-for instance, large capital equipment. Each item in inventory will have its own Specific Cost. When we choose the Specific Costing Method, we must also choose to use Serial Number Item Tracking.

Detailed explanation-3: -Job costing is an accounting method designed to help you track the cost of individual projects and jobs. It involves looking at direct and indirect costs, and it’s usually broken into three specific categories: labor, materials and overhead.

Detailed explanation-4: -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-5: -Job costing is a costing method used to determine the cost of specific jobs, which are performed according to the customer’s specifications. It is a basic costing method which is applicable where work consists of separate projects or contract jobs.