Question: Case 2: Job costing may be defined as a system of costing in which the elements of cost are accumulated separately for each job or

 Case 2: Job costing may be defined as a system of

Case 2: Job costing may be defined as a system of costing in which the elements of cost are accumulated separately for each job or work order undertaken by an organization. Industries which manufacture products or render services against specific orders use job costing or job order method of cost accounting. In the job costing system, an order or a unit, tot or batch of product may be taken as a cost unit, i.e. a job. Job costing is a method of costing in which cost units can be separately identified and need to be separately costed. The primary purpose of job costing is to bring together all the costs incurred for completing a job. Because the costs of each job are included in the job order cost sheet, they do not need to be recorded in the general ledger." Answer the following Questions: (4 +6 = 10 Marks) a. Is this statement true or false, and why? (300 words) c. Select a job order company and explain in your own words the job casting procedure will be in the company. (300 words)

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