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Which of the following is a feature of job costing?
- a)Each job is treated as a cost unit
- b)A separate work in progress ledger is maintained for each job
- c)Profit or loss is determined for each job independently of others
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
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Which of the following is a feature of job costing?a)Each job is treat...
Job Costing Features
Job costing is a costing method used to determine the cost of producing a specific job, project, or customer order. It is commonly used in industries such as construction, manufacturing, and custom fabrication, where each job is unique and requires individual tracking of costs. Job costing provides accurate cost information for decision-making, pricing, and evaluating profitability.
Feature 1: Each job is treated as a cost unit
In job costing, each job is considered a separate cost unit. This means that costs are allocated to individual jobs based on the specific resources and activities required for each job. The costs are tracked and accumulated for each job separately, allowing for accurate determination of the cost of each job.
Feature 2: A separate work in progress ledger is maintained for each job
To effectively track the costs associated with each job, a separate work in progress (WIP) ledger is maintained for each job. The WIP ledger records the direct materials, direct labor, and overhead costs incurred for each job. It provides a detailed breakdown of the costs by job, allowing for better cost control and monitoring of job progress.
Feature 3: Profit or loss is determined for each job independently of others
Job costing enables the determination of profit or loss for each job independently of others. By comparing the total costs incurred for a job with the revenue generated from that job, the profitability of each job can be assessed. This information is crucial for evaluating the performance of each job, identifying areas of improvement, and making informed business decisions.
Conclusion
In summary, the features of job costing include treating each job as a cost unit, maintaining a separate work in progress ledger for each job, and determining profit or loss for each job independently of others. These features allow for accurate cost allocation, better cost control, and evaluation of job profitability. Job costing provides valuable information for decision-making and helps organizations effectively manage their costs and resources.
Job costing is a costing method used to determine the cost of producing a specific job, project, or customer order. It is commonly used in industries such as construction, manufacturing, and custom fabrication, where each job is unique and requires individual tracking of costs. Job costing provides accurate cost information for decision-making, pricing, and evaluating profitability.
Feature 1: Each job is treated as a cost unit
In job costing, each job is considered a separate cost unit. This means that costs are allocated to individual jobs based on the specific resources and activities required for each job. The costs are tracked and accumulated for each job separately, allowing for accurate determination of the cost of each job.
Feature 2: A separate work in progress ledger is maintained for each job
To effectively track the costs associated with each job, a separate work in progress (WIP) ledger is maintained for each job. The WIP ledger records the direct materials, direct labor, and overhead costs incurred for each job. It provides a detailed breakdown of the costs by job, allowing for better cost control and monitoring of job progress.
Feature 3: Profit or loss is determined for each job independently of others
Job costing enables the determination of profit or loss for each job independently of others. By comparing the total costs incurred for a job with the revenue generated from that job, the profitability of each job can be assessed. This information is crucial for evaluating the performance of each job, identifying areas of improvement, and making informed business decisions.
Conclusion
In summary, the features of job costing include treating each job as a cost unit, maintaining a separate work in progress ledger for each job, and determining profit or loss for each job independently of others. These features allow for accurate cost allocation, better cost control, and evaluation of job profitability. Job costing provides valuable information for decision-making and helps organizations effectively manage their costs and resources.
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Which of the following is a feature of job costing?a)Each job is treat...
Job costing has several features. Each job is treated as a cost unit, meaning that the costs are tracked and allocated to each job separately. A separate work in progress ledger is maintained for each job, allowing for the tracking of costs and progress. Additionally, profit or loss is determined for each job independently of others, providing a clear understanding of the financial outcome of each job.
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Which of the following is a feature of job costing?a)Each job is treated as a cost unitb)A separate work in progress ledger is maintained for each jobc)Profit or loss is determined for each job independently of othersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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Which of the following is a feature of job costing?a)Each job is treated as a cost unitb)A separate work in progress ledger is maintained for each jobc)Profit or loss is determined for each job independently of othersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which of the following is a feature of job costing?a)Each job is treated as a cost unitb)A separate work in progress ledger is maintained for each jobc)Profit or loss is determined for each job independently of othersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is a feature of job costing?a)Each job is treated as a cost unitb)A separate work in progress ledger is maintained for each jobc)Profit or loss is determined for each job independently of othersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Which of the following is a feature of job costing?a)Each job is treated as a cost unitb)A separate work in progress ledger is maintained for each jobc)Profit or loss is determined for each job independently of othersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which of the following is a feature of job costing?a)Each job is treated as a cost unitb)A separate work in progress ledger is maintained for each jobc)Profit or loss is determined for each job independently of othersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is a feature of job costing?a)Each job is treated as a cost unitb)A separate work in progress ledger is maintained for each jobc)Profit or loss is determined for each job independently of othersd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
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