CMA-Unit 4 Job, batch & contract costing 18-19.pptx -...

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CMA-UNIT-4 Job costing, Batch costing and Contract Costing
Job-order costing is the procedure to accumulate cost when work is performed pursuant to an order to meet individual customer’s specifications. Job costing
Such a system can be appropriately applied to accumulate costs in the following situations: Auto-repair shops, where each repair job requires varying amounts of material and labour. The mechanic will charge the cost of any replaced parts and the number of labour-hours spent in repairing. Automobile assembly, where each car includes a variety of different options. Printing shops, where each print order requires a different type of paper, ink, design and so on. Foundries, where special parts are to be manufactured as per order. Hospitals, where the costs of services provided to each patient are billed separately. Contractors, shipbuilders and motion picture companies. Machine shops, tool shops and design engineers. Public accounting firms and other similar professions, where each audit, tax return, or management services engagement needs varying amounts of professional time and attention. Furniture making firms, where they may produce a batch of similar chairs, tables, sofas, and so on.

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