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What are the advantages and disadvantage of Job Costing?

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What are the advantages and disadvantage of Job Costing?
posted Jul 7, 2017 by Raghav Choudhary

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The following are the recognized advantages:

  1. Since all costs are compiled, more accurate costing is possible.

  2. It is simple as the recording of direct materials .and labour hours is done by job.

  3. Job cost sheets can be used to attain efficiency and estimate future Work.

  4. It provides a basis for making comparison of cost of one job with that of the other.

  5. Since spoilage and defectives from each job can be known separately, they can be easily controlled.

  6. Profitability of each job can be ascertained easily.

The following are the disadvantages:

  1. It requires detailed and separate record keeping for each job.

  2. The detailed and separate record keeping for different jobs may prove complicated.

  3. Since it involves much clerical work to maintain detailed records it becomes costly.

answer Jul 8, 2017 by Ramesh Gowda
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