Job costing is a costing technique used when jobs are unique to customer specifications. It involves tracking direct and indirect costs for each job. Job costing is used in industries like construction, shipping, and services where each job differs, to determine the profit or loss of individual jobs and help plan future jobs by comparing actual and estimated costs.

1. Prof. Mishu Tripathi
Asst Professor-Finance

2.  Job Costing is an order-specific costing
technique, used in situations where each job
is different and is performed to the
customer's specifications.
 Jobcosting involves keeping an account of
direct and indirect costs.

3.  Job costing methods are used in
construction, motion picture, and shipping
industries, in fabrication, repair, and
maintenance works, and in services such as
auditing.
 Shipping, auditing, maintenance and
repair, installation, and any industry which
creates products unique to each need uses
job costing, being it the most efficient
method.

4.  Cost of each job is ascertained separately.
This helps in finding out the profit or loss on
each individual job
 Itenables management to detect those jobs
which are more profitable and those which
are unprofitable

5.  Itprovides the basis for determining the cost
of similar jobs undertaken in future. It thus
helps in future production planning
 Ithelps management in controlling costs by
comparing the actual costs with the
estimated costs