Page 216 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Pipe Supports Ltd
Established in 1968, pipe Supports Limited was born out of her parent company, British
Industrial Engineering to provide a comprehensive range of pipe supporting equipment to
the power generation and petro-chemical industries. After 25 years in private ownership
the business was purchased by Hill & Smith Holdings plc in 1993 and the pipe Supports
Group was created. Their requirements focussed on the ability to record time employees’
spend on a particular job and/or task, to have access to data in real time and to have the
option of transferring attendance data to your Sage payroll system.
The easier it is for employees to use, then the more likely they are to use the system. Within
CaptureIT, users have the ability to mark processes as complete. You can either mark the
whole job as complete once it finished, or you can mark each task as complete as and
when they are done. Both these methods will prevent any more time being booked by your
employees. Completed jobs are removed from the user view so that you only see jobs that
are live at that point in time.
All job costing data is recorded and accessible in real time with full management reporting
capabilities. All reports can be accessed by administrators and exported in various formats
with the ability to email the report to designated staff members such as line managers for
immediate action.
The CaptureIT PayLink automatically transfers all attended time and job costs to Sage
payroll cutting out human error and drastically reducing manual administration time.

10.6 Summary

z z Job costing is a method of costing applied in industries where production is measured in
terms of completed jobs.
z z Industries where job costing is generally applied are printing press, ship building, repair
workshops, foundry, automobile garage and other similar manufacturing units which
manufacture to customer’s specific requirements.
z z Job costing is helpful to ascertain the cost as well as the profit or loss for each job
separately.

z z The data of the job costing are quite helpful for the future planning.
z z Batch Costing is used where small parts of considerable number are produced, such as
industries producing machinery parts, machine tools, etc.

z z No special costing principles are involved, each batch constituting a separate unit divided
into sub-units of each piece produced.

z z Entire production is divided into economic groups or batches and usual and appropriate
costing methods are applied to each batch or group.

10.7 Keywords

Economic batch quantity: Optimal batch quantity he
Job costing: Calculation of costs involved a construction
Production cost: Combined costs of raw material and labor incurred in producing goods

Supervision cost: Small monthly fee to offset the costs of supervision
Work-in-progress: piece of work that is not yet finished

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