DIFFERENCE BETWEEN JOB COSTING AND BATCH COSTING

JOB COSTING VS BATCH COSTING

Job Costing VS Batch Costing is as follows:

BASIS FOR COMPARISON	JOB COSTING	BATCH COSTING
Meaning	Job costing refers to a specific costing method, used when the production/work is carried out according to the requirements of customers.	Batch costing, is a form of job costing that is applied when the articles are produced in batches, i.e. a group of like units are produced.
Production	The product is produced as per customer specification.	The product is produced at large scale or there is mass production.
Product	Product has an independent identity, as each job is distinct from other jobs.	Products do not lose their individual identity, as they are manufactured in continuum.
Cost unit	The cost unit in job costing is Executed Job.	The cost unit in batch costing is Batch of goods produced.
Cost ascertainment	The cost is ascertained on the completion of each job.	The cost is ascertained for the whole batch and then per unit cost is determined.

JOB COSTING

Job costing or job order costing also called specific order costing is a method of costing which is used when work is undertaken as per the customer’s special requirement (tailor-made).

ACCORDING TO INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS, LONDON

“Job costing is that form of specific order costing which applies where work is undertaken to customer’s specific requirements and each order is of comparatively of short duration.”

Under this method of costing, each job is considered to be a distinct cost unit. As such, each job is separately identifiable. In the case of a job, work is usually carried out within the factory or workshop. Sometimes, a job is accomplished even in the customer’s premises.

Job costing is employed in the following cases:

• Where the production is against the order of the customer or jobs are executed for different customers according to their specifications.
• Where each job needs special treatment and no two orders are necessarily alike.
• Where there is no uniformity in the flow of production from one department to another.
• Where the work-in-progress differs from period to period on the basis of the number of jobs in hand.

Job costing is applicable to printing, furniture, hardware, ship-building, heavy machinery, foundry general engineering works, machine tools, interior decoration, repairs and other similar work.

BATCH COSTING

Batch Costing is that form of specific order costing under which each batch is treated as a cost unit and costs are accumulated and ascertained separately for each batch. Each batch consists of a number of like units. To ascertain the cost per unit, the total cost of the batch is divided by the number of units produced in a batch. Batch costing is applied in industries where identical products are produced.

Also Study	Also Study	Also Study	Also Study
Cost Accounting	Scope of cost accounting	Elements of cost	Types of cost
Material control	Perpetual inventory system	Pricing of materials	Bin Card
Stores Ledger	Incentive plans	Overheads	Idle time
System of wage payment in cost accounting	Time rate vs piece rate wage system	Cost Center	Labour Turnover
Difference between management accounting and cost accounting	Allocation and apportionment of overheads	Allocation vs Apportionment of overheads	Absorption of overheads
Over absorption and under absorption of overheads	Activity based costing	Traditional costing vs ABC system	Reconciliation of accounts
Unit costing	Cost sheet format	Cost sheet vs production sheet	Job costing
Batch Costing	job costing vs batch costing	Contract costing	Job Costing vs Contract costing
Process Costing	Process costing vs job costing	Joint products	By Product
Equivalent production	Marginal costing	Application of marginal costing	Cost volume profit analysis
Tools and techniques of marginal costing	Budget	Break even point	Process of budgetary control
Advantages and limitations of budgetary control	Budgetary Control	Zero base budgeting	Standard Costing
Variance Analysis	Standard costing vs budgetary control	Management accounting vs cost accounting	Cost accounting vs financial accounting