Job, Batch And Service Costing

Question 1

Batch costing vs job

Answer 1

A costing system that gathers together the costs of production of an entire batch of a similar product in order to find the cost of each individual item in that batch.

Job allocates costs to individual ‘one-off’ jobs for customers

Question 2

Composite cost unit

Answer 2

A cost unit where the service combines more than one activity