What is a specific order costing?

Specific order costing is the category of basic costing methods applicable where the work consists of separate jobs, batches or contracts each of which is authorised by a specific order or contract. It includes job costing consisting batch costing and contract costing.

What is difference between job order costing and process costing?

Job costing involves the detailed accumulation of production costs attributable to specific units or groups of units. Process costing involves the accumulation of costs for lengthy production runs involving products that are indistinguishable from each other.

What is continuous costing?

Continuous operation costing is used where the goods or services being costed are the result of continuous or repetitive operations or processes. Costs for a financial period are collected for the particular operation or process and divided by the number of units produced in the period to give an average cost per unit.

Which costing method is also called continuous costing?

Continuous costing are also called process costing because industries that adopt continuous costing process will continuously manufacture the commodities.

Which is a method of specific order costing Mcq?

Job costing is used when a business entity carries out tasks or jobs to meet specific customer orders.

What are the similarities between job order costing and process costing?

Job costing and process costing have important similarities: Both job and process cost systems have the same goal: to determine the cost of products. Both job and process cost systems have the same cost flows. Accountants record production in separate accounts for materials inventory, labor, and overhead.

Is also called as continuous costing?

In such a situation, process costing is used. Normally, finished product of one process is used as raw material for the next process and a final product is obtained in the last process. As the products are manufactured in a continuous process, this is also known as continuous costing.

Is form of specific order costing which applies where work is undertaken as per customer’s specific requirement?

i) Job Costing: defines Job Costing as – “that form of specific order costing which applies where work is undertaken to customers’ “special requirements”. Under this method, costs are collected and accumulated for each job, work order or project separately.

What is the difference between specific order costing and continuous operation costing?

The major difference between specific order costing and continuous operation costing is that in specific order costing, materials and labour cost are able to directly charge to cost unit and overheads are allocated/apportioned to a cost centre before sharing the costs over cost units.

What is contract costing method?

Contract costing method of another specific order costing which is not much different than the job costing method. It is mainly suitable for large scale contracts. This type of costing method is used in the construction work of buildings which takes a tedious time for completion. Contract costing is a large-scale costing method.

What is specific order costing (SoC)?

The terminology of I.C.M.A. defines Specific Order Costing as – “the category of basic costing methods applicable where the work consists of separate contracts, jobs or batches each of which is authorised by a special order or contract”.

What is job order costing?

Job order costing is that form of specific order costing that applies where work is undertaken to customer-specific requirements and each order is of comparatively short duration (compared with those to which contract costing applies).