Job Costing Flashcards
1
Q
what is job costing?
A
Job costing accumulates the costs associated with the manufacturing of a single unique unit or batch. Costs are traced to the cost object using a job cost card.
2
Q
What is process costing?
A
process costing is used when masses of similar products are produced. It is not necessary to trace costs to individual products. These products consume the same amount of overhead and direct costs.
3
Q
What is contract costing?
A
similar to job costing, except it can be spread over multiple reporting periods e.g. construction project.
longer time frame causes issues when accounting for revenue and costs.
