12 Job and Batch Costing

Question 1

What is the definition of a job?

Answer 1

Customer order or task of relatively short duration

Question 2

What is the definition of job costing?

Answer 2

This is a form of specific order costing where costs are attributed to individual jobs e.g. a local garage

Question 3

What is batch costing?

Answer 3

This is a form of a specific order costing where costs are attributed to batches of a product. Similar to job costing. Each batch is able to be distinguished from another.
- Costs identifiable for each batch produced.
E.g. wedding invitation cards