{"id":7124,"date":"2023-05-17T17:30:29","date_gmt":"2023-05-17T17:30:29","guid":{"rendered":"https:\/\/commerceiets.com\/?p=7124"},"modified":"2023-05-17T17:30:30","modified_gmt":"2023-05-17T17:30:30","slug":"methods-of-cost-accounting-and-their-adaptability-in-different-industries","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/methods-of-cost-accounting-and-their-adaptability-in-different-industries\/","title":{"rendered":"Methods of Cost Accounting and their Adaptability in different industries- Best explanation"},"content":{"rendered":"\n

Methods of Cost Accounting and their Adaptability in different industries<\/h3>\n\n\n\n

Different methods of costing are applied for ascertaining unit cost in different industries based on the nature of operation and unit of finished product involved.<\/p>\n\n\n\n

Basically, there are two methods of costing viz., Job Costing and Process Costing.<\/p>\n\n\n\n

\"Methods
Methods of Cost Accounting and their Adaptability in different industries<\/figcaption><\/figure>\n\n\n\n

Job costing<\/strong> is applied to special order type of industry which is devoted to the execution of specific orders such as printing press, ship building house building, road construction, bridge construction, etc., The main object of job costing is to ascertain the cost and profit or loss in respect of each job, contract or project undertaken.<\/p>\n\n\n\n

Process costing<\/strong> is applied to mass production type of industry engaged in the continuous production of uniform standard products such as chemicals, oil, cement, cloth, yarn, mining, colliery, etc. The main object of process costing is to ascertain the cost of process or operation involved in converting raw materials into finished products. <\/p>\n\n\n\n

The different methods of costing, which represent finer divisions of these two basic methods, may be enumerated as follows:<\/p>\n\n\n\n

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Methods of Cost Accounting and their Adaptability in different industries<\/figcaption><\/figure>\n\n\n\n

1. SINGLE COSTING OR UNIT COSTING:<\/strong> This method of costing is applied to ascertain the total and per unit cost of standard product turned out in a manufacturing concern. This method of costing is generally applied to industries where the following features are present:<\/p>\n\n\n\n

(a) The output or production is continuous.<\/p>\n\n\n\n

(b) The units of output are identical.<\/p>\n\n\n\n

(c) The units of output are natural.<\/p>\n\n\n\n

(d) It is desirable to ascertain the cost per unit of output e.g., per tonne, per kilogram, per metre, etc.<\/p>\n\n\n\n

Adaptability of single or unit costing: <\/strong>Unit costing is used in industries like<\/p>\n\n\n\n