COSTING METHODS QUES

Job costing is a method where costs are accumulated separately for each distinct job or order; it is primarily used in industries like construction, shipbuilding, printing, and bespoke manufacturing where each job has unique specifications.

To ascertain, control, and reduce the cost of production.

In batch costing, costs are collected for a group (batch) of identical products rather than a single job; the cost per unit is obtained by dividing the total batch cost by the number of units in the batch.

Any item for which a separate cost measurement is desired.

Process costing is a method where costs are accumulated for each stage (process) of continuous or mass production; it is applicable in industries like chemicals, textiles, oil refining, and food processing where output is homogeneous.

Prime cost equals direct material plus direct labour plus direct expenses.

Normal loss is the expected or unavoidable loss inherent in a production process, estimated on the basis of past experience or technical factors; its cost is absorbed by the remaining good output, raising the cost per unit.

Prime cost plus factory overheads; total cost incurred in the factory.