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Advantages and Disadvantages of Job costing

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2.8.2 Advantages
The following are the advantages of batch costing:
1) It ensures optimum capital investment
2) It ensures optimum cost of production per unit
3) It is very suitable to small sized industrial units
4) It enables pre-determination of costs and presenting quotations
2.8.3 Disadvantages
The following are the disadvantages (limitations) of batch costing:
1) It needs lengthy calculations every time
2) Faulty calculations of the batch cost will lead to over or under recovery of
costs.


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