top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration

What are the advantages and disadvantage of Job Costing?

+1 vote
7 views
What are the advantages and disadvantage of Job Costing?
posted Jul 7, 2017 by Raghav Choudhary

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

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
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#280, 3rd floor, 5th Main
6th Sector, HSR Layout
Bangalore-560102
Karnataka INDIA.
QUERY HOME
...