01-02-2013, 02:19 PM
Methods of Costing
Methods of Costing.ppt (Size: 171 KB / Downloads: 23)
Definition
Cost:
It is the amount of expenditure incurred on a particular thing
Costing:
It is a process of ascertainment of costs.
Various Methods
1- Job Costing:
It is used in a business where the production is made up of individual large jobs , each of which is different and has different inputs of materials and labour.
e.g. Material cost, Labour cost, Overhead cost etc.
2- Batch Costing:
It is suitable for a business that produces batches of identical units, but each batch is for different units.
3- Process Costing:
It is the costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes.
4- Contract Costing:
It is a method of costing used to find out the cost of each contract.
e.g. Construction of building, dams or factories