Characteristics of Job Costing

Characteristics of Job Costing

1.    Each Job distinguishable

Each job can be clearly distinguishable from other jobs. Each job is given a unique Job number, which clearly distinguish that job from other jobs performed by the organization.

2.    Customer Specific

Job costing is used, where job is performed at the request of the customer. Each job is performed as per specific requirement of customer.

3.    Job Price

Job price is agreed with customer on the bases of cost estimation. An appropriate percentage is added to the cost for quoting a price to the customer.

4.    Separate Record

Separate record is kept for each job. This record is handy for calculating the profit from the job.

5.    Job Cost Sheet

All cost related to job are collected on jobs cost sheet or job card. These costs are then charged to job work in progress account.

6.    Job Account

All cost are transferred / recorded for job cost sheet to the job account, factor overheads are also charged to the job in job account. On completion selling and other administrative expenditure also charged to job account to calculate full cost of jobs.