Test Questions in Job Costing

1. What do you understand by the meaning of job costing?
2. What are the various benefits associated with job costing?
3. Explain in detail the meaning of batch costing.
4. State various limitations of job costing.

Problem and solution related to job costing

There are 6 steps which should be used for solving problems in job costing. Those six steps are:

1. Identification of selected job which is picked as the object of costing.
2. Point out direct rate associated with
3. For allocation of indirect cost to the work, select appropriate cost-allocation medium for use.
4. Categorise the collateral cost of individual cost-allocation medium.
5. Calculate rate per unit of distinct cost-allocation medium which is used for distributing the indirect cost to trade.
6. Calculate overall job cost by computing every cost which is direct and indirect and is commissioned to the work.

Links of Previous Main Topic:-

• Introduction to accounting and branches of accounting
• Preparation of final accounts
• Introduction of fund flow statement
• Introduction cash flow statement
• Ratio analysis significance of ratio analysis
• Fixed assets and depreciation meaning causes objectives methods and basic factor
• Cost accounting concept objectives advantages limitations general principles and cost sheet
• Job costing
• Limitations of job order costing
• Batch costing

Links of Next Finance Topics:-

• Activity based costing introduction concept and classification
• Introduction inventory pricing and valuation
• Standard costing introduction
• Management accounting
• Marginal costing
• Relevant cost for decision making
• Budget and budgetary control
• Limitations of historical accounting
• Introduction to responsibility accounting

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