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Features of Job costing

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2.4 Features
1) Production is undertaken only against order. Therefore, there is neither
production in anticipation of demand nor production for stock purposes.
2) Each job is different in terms of materials required, labour required, time
required, volume of processing required etc. Therefore, each job needs
separate planning.
3) Each job has to be executed according to the customer’s specifications.
4) Each job is assigned a separate cost sheet or job card to collect costs and
ultimately calculate the total cost.
5) Each job is a cost unit.
6) The cost of each job is ascertained only after its completion.
7) The work-in-progress is always different.
8) The production of different jobs is non-uniform, non-continuous and intermittent.
The nature of the job determines the flow and the departments through which, it
has to pass.

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