PPT - Batch Costing | Cost Accounting - B Com PDF Download

 Page 1


Job, Batch, Contract & Process costing
Page 2


Job, Batch, Contract & Process costing
? Order costing/ production Order Costing/
Specific Order Costing
? Determine the cost of specific jobs or lots of
production, work order or project separately,
? Manufacturing firm like presses, machine-
tool and non-manufacturing concern general
engg. Workshop & Auto Repair shop,
? Followed by accounting cycle for jobs,
? Flow of production is different in every
department
Page 3


Job, Batch, Contract & Process costing
? Order costing/ production Order Costing/
Specific Order Costing
? Determine the cost of specific jobs or lots of
production, work order or project separately,
? Manufacturing firm like presses, machine-
tool and non-manufacturing concern general
engg. Workshop & Auto Repair shop,
? Followed by accounting cycle for jobs,
? Flow of production is different in every
department
? Determine profit or loss of each job, the 
actual costs are compared with the 
estimated costs, so to ascertain correct 
estimation & separate the profitable jobs 
from the unprofitable ones.
? Helps in minimising the losses & maximising
profits,
? Cost per unit can be ascertained
Page 4


Job, Batch, Contract & Process costing
? Order costing/ production Order Costing/
Specific Order Costing
? Determine the cost of specific jobs or lots of
production, work order or project separately,
? Manufacturing firm like presses, machine-
tool and non-manufacturing concern general
engg. Workshop & Auto Repair shop,
? Followed by accounting cycle for jobs,
? Flow of production is different in every
department
? Determine profit or loss of each job, the 
actual costs are compared with the 
estimated costs, so to ascertain correct 
estimation & separate the profitable jobs 
from the unprofitable ones.
? Helps in minimising the losses & maximising
profits,
? Cost per unit can be ascertained
? Jobs are ascertained against the order of 
customers,
? Production is not meant for stock or future 
sale,
? Not a continuous process,
? Different degrees of attention & skills are 
required for different jobs,
? Nature of the job decides the process of 
each job so, no uniformity in the flow of 
production,
? Separate cost sheet for each job
Page 5


Job, Batch, Contract & Process costing
? Order costing/ production Order Costing/
Specific Order Costing
? Determine the cost of specific jobs or lots of
production, work order or project separately,
? Manufacturing firm like presses, machine-
tool and non-manufacturing concern general
engg. Workshop & Auto Repair shop,
? Followed by accounting cycle for jobs,
? Flow of production is different in every
department
? Determine profit or loss of each job, the 
actual costs are compared with the 
estimated costs, so to ascertain correct 
estimation & separate the profitable jobs 
from the unprofitable ones.
? Helps in minimising the losses & maximising
profits,
? Cost per unit can be ascertained
? Jobs are ascertained against the order of 
customers,
? Production is not meant for stock or future 
sale,
? Not a continuous process,
? Different degrees of attention & skills are 
required for different jobs,
? Nature of the job decides the process of 
each job so, no uniformity in the flow of 
production,
? Separate cost sheet for each job
? Distinguish profitable from the unprofitable 
jobs,
? Assist in preparing the estimation,
? Detailed analysis of cost elements & 
functions,
? Helps in future production planning,
? Cost data helps in preparing budgets,
? Spoilage & defective work can be discovered,
? Facilitates in cost plus contracts,
? Helps management in fixing SP of special 
orders,
? Useful for statistical purpose in determining 
the trends of jobs