47 overview to job,batch, and service costing

The first section we should look at is job costing. We will see the circumstances in which job costing should be used and how the costs of jobs are calculated. We will look at how  the costing of individual jobs fits in with the recording of total costs in control accounts and then we will move on to batch costing , the procedure for which is similar to job costing. Service costing deals with specialist services supplied to third parties or an internal service supplied within an organization. A costing method is designed to suit the way goods are processed or manufactured or the way services are provided.each organization’s costing method will have unique features but costing methods of firms in the same line of business will more than likely have common  aspects. Organizations involved in completely different activities, such as hospitals and car part manufacturers will use very different methods.