ECONOMICS

Detailed explanation-1: -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-2: -In a job-order costing system, direct materials costs and direct labor costs are usually traced directly to jobs. Overhead is applied to jobs using a predetermined rate. Actual overhead costs are not traced to jobs.

Detailed explanation-3: -Direct Material – Direct materials are the major contributors to job order costing. These costs are entirely dependent on the quality and quantity of finished goods. Raw materials. read more directly consumed for completion of specific jobs or manufacturing of finished goods come under direct material.

Detailed explanation-4: -It accumulates costs for each department within the factory, is not a characteristic of a job order costing system.