Job Costing & Batch Costing - Dani Ki Costing - CA IPCC Video Lectures
Job Costing & Batch Costing - Dani Ki Costing - CA IPCC Video Lectures | Job Costing & Batch Costing - Dani Ki Costing - CA IPCC Video Lectures | Job Costing & Batch Costing - Dani Ki Costing - CA IPCC Video Lectures | Job Costing & Batch Costing - Dani Ki Costing - CA IPCC Video Lectures | Job Costing & Batch Costing - Dani Ki Costing - CA IPCC Video Lectures
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Job Costing & Batch Costing
Job costing is a method in which costing for different jobs,
activities, contracts, etc has to be determined. Job Costing method works for
the purposes like analysis and ascertainment of cost of each unit of
production, controlling and regulating cost and determination of profitability
of the organization. Job Costing Method is considered as the principal costing
method.
The method of job costing is a process in itself consisting of
stages like preparation of separate cost sheet for each job, then disclosing
cost of material issued for job and the labor charges incurred and at last
overhead charges are added when the job is completed to derive the total cost
for the job. Job costing method is suitable when there are different jobs
performed for different customers also when each order is of different type and
requires some special treatment.
Batch costing is a technique on which cost for a batch is derived.
Batch means a lot of product produced, say 1000 units. Batch costing is a wing
of Job costing. There is a thin line of difference and that is a job is
considered as a unit while calculating the cost in job costing and a lot of
product i.e. batch is considered while calculating cost in batch costing
method.
While calculating cost in batch costing difficulty arises in
deciding the size of batch which is known as economic batch quantity. It
involves two types of costs viz. set up cost and carrying cost. Economic Batch
Quantity is calculated with the help of a formula in which the items considered
are annual demand of the product, setting up cost per batch and carrying cost
per unit of production.
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