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Unit 10: Job and Batch Costing
Self Assessment Notes
State whether the following statements are true or false:
1. Job costing is a method of costing applied in industries where production is measured in
terms of completed jobs.
2. Job costing can be efficiently operated without highly developed production control
system.
3. Job costing is not that useful in quoting cost plus contract.
4. The cost accountant estimates the cost of job after considering the various elements of cost
and keeping in mind the specification of customer.
5. Materials may have to be purchased or requisitioned from the stores.
6. There is one job cost sheet is prepared for all the jobs undertaken.
7. Batch Costing is used where small parts of considerable number are produced.
8. The concept of economic batch quantity is an example of the law of increasing returns.
9. This is a variation of job costing.
10. Cost is not ascertained for each job separately.
Fill in the blanks:
11. Job costing is a method of costing whereby cost is ……………………… for a job.
12. Job costing helps the management to know about the ……………………… of the jobs.
13. The cost accountant ……………………… the cost of job after considering the various
elements of cost.
14. On completion of a job, the production department sends a completion report of job to the
………………………
15. Determination of a ……………………… from various jobs often pose problem.
Case Study Example on Job Costing
Cordek Ltd
Cordek Ltd was formed in 1973 to introduce specialist new products and services to the
construction industry. Cordek has been at the forefront of developing innovative solutions
manufacturing a wide range of products for a variety of applications. Having researched
the market for suitable suppliers they contacted Vizual. Their requirements were based
around a Job Costing System that gave them the ability to record time employees’ spend
on a particular job and/or task, and to be able to enter budgetary figures against jobs and
be notified when a job is over budget.
Their main focus was on ease-of-use for their employees allowing them to record hours
spent against the jobs they are working on. The management team required a further
breakdown of how much time was spent on individual tasks within that particular job.
CaptureIT can cope with unlimited numbers of jobs and tasks, which means it is easily able
to cope with all costing requirements.
Contd…
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