ECONOMICS

Detailed explanation-1: -Job costing is accounting which tracks the costs and revenues by “job” and enables standardized reporting of profitability by job. For an accounting system to support job costing, it must allow job numbers to be assigned to individual items of expenses and revenues.

Detailed explanation-2: -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.

Detailed explanation-3: -Which of the following statement is correct with regard to job costing? Job costing differs from most other types of costing system because each cost unit is a job, and no two jobs are exactly the same. Each job is costed separately.

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.