{"id":3406,"date":"2020-02-17T14:48:46","date_gmt":"2020-02-17T14:48:46","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3406"},"modified":"2020-02-17T14:48:46","modified_gmt":"2020-02-17T14:48:46","slug":"job-costing-vs-batch-costing","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/job-costing-vs-batch-costing\/","title":{"rendered":"DIFFERENCE BETWEEN JOB COSTING AND BATCH COSTING"},"content":{"rendered":"\n

JOB COSTING VS BATCH COSTING<\/strong><\/h2>\n\n\n\n
\"JOB
JOB COSTING VS BATCH COSTING<\/strong><\/figcaption><\/figure>\n\n\n\n

Job Costing VS Batch Costing is as follows:<\/strong><\/p>\n\n\n\n

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

JOB COSTING<\/strong><\/p>\n\n\n\n

Job costing or job order costing<\/a> also called specific order costing is a method of costing which is used when work is undertaken as per the customer\u2019s special requirement (tailor-made).<\/p>\n\n\n\n

ACCORDING TO\nINSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS, LONDON<\/strong><\/p>\n\n\n\n

\u201cJob costing is that form of specific order costing which\napplies where work is undertaken to customer\u2019s specific requirements and each\norder is of comparatively of short duration.\u201d <\/p>\n\n\n\n

Under this method of costing, each job is considered to be a\ndistinct cost unit. As such, each job is separately identifiable. In the case\nof a job, work is usually carried out within the factory or workshop.\nSometimes, a job is accomplished even in the customer\u2019s premises.<\/p>\n\n\n\n

Job costing is employed in the following cases:<\/p>\n\n\n\n