“That form of specific order costing which applies where work is undertaken to customers’ special requirements and each order is comparatively for short duration. The work is carried out within a factory or workshop and moves through processes and operations as a continuously identifiable unit.
The following are the features of Job Costing:
(i) The production is always against customers’ order and not for stock;
(ii) Each job has its own characteristics and, therefore, needs special treatment;
(iii) There is no uniformity in the flow of production from department to department;
(iv) The department through which job has to be processed depends purely on the nature of each job;
(v) The work-in-progress differs from period to period according to the number of jobs on hand;
(vi) Job cost system is essential, if costs tend to vary markedly from order to order and specific cost date is required for each order;
(vii) Under job costing each job or order is given a number.