Job Costing Features

Features of Job Costing:

(a) It is a Specific Order Costing.

(b) The job is carried out or a product is produced to meet the specific requirements of the order. It may be related to single unit or a batch of similar units.

(c) It is concerned with the cost of an individual job or batch regardless of the time taken to produce it, but normally short duration jobs.

(d) Costs are collected to each job at the end of its completion.

(e) The costs of each job is ascertained by adding materials, labour and overheads.

(f) Only prime cost elements are traceable and the overheads are apportioned to each job on some appropriate basis and sometimes it is difficult to select a suitable method of absorption of overheads to individual jobs.

(g) Standardization of controls is comparatively difficult as each job differs and more detailed supervision and control is necessary.

(h) Work-in-progress may or may not exist at the end of the accounting period.

(i) Separate cost record is maintained for each job from the time the production begins until it is completed.

(j) Separate job or production numbers are allotted to each job as each job is a separate accounting unit.

(k) The job usually carried out in the factory premises.

from http://www.accountingnotes.net/cost-accounting/job-costing/job-costing-meaning-and-features-cost-accounting/10438

with some additional notes from others as well.......