Page 21 - Cost Accounting - Ready Reckoner
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CHAPTER – 4
Methods of Costing
Applicability of costing is varied based on type of industry. Different industries
follow different method of Costing.
1. Job Costing
2. Batch Costing
3. Process Costing
4. Joint Product and By Product Costing
5. Contract Costing
6. Operating Costing
Job Costing:
Job Costing is method of costing followed by industries which manufacture
products or render services against specific orders.
The method of costing takes the format of a job cost sheet where all costs
associated to the job order is summed up, a mark-up is added for profits, and the
quotation is prepared for the order.
