For industry doing job work
- An entity which is engaged in the execution of specific orders, each order being distinguishable from another. Such a concern is thought of involved in performing job works.
- Production under job work is strictly according to customer’s specifications and each lot, job or production order is unique.
- Examples of jobs order type of production are: ships building, roads, bridges, manufacture of heavy electrical machinery, machine tools, iron foundries, wood working shops, etc. Here each job or unit of production is treated as a separate identity for the purpose of costing.
- The methods of costing and for ascertaining cost of each job are known as a job costing, contract costing and Batch costing.
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