Prof. Mishu Tripathi

Asst Professor-Finance

Job Costing is an order-specific costing

technique, used in situations where each job

is different and is performed to the

customer's specifications.

Job costing involves keeping an account of

direct and indirect costs.

Job costing methods are used in

construction, motion picture, and shipping

industries, in fabrication, repair, and

maintenance works, and in services such as

auditing.

Shipping, auditing, maintenance and

repair, installation, and any industry which

creates products unique to each need uses

job costing, being it the most efficient

method.

Cost of each job is ascertained separately.

This helps in finding out the profit or loss on

each individual job

It enables management to detect those jobs

which are more profitable and those which

are unprofitable

It provides the basis for determining the cost

of similar jobs undertaken in future. It thus

helps in future production planning

It helps management in controlling costs by

comparing the actual costs with the

estimated costs