Following are main advantages of job costing:
Ist Advantage of Job Costing : Better Control over Cost
We are different methods of costing and we use it in different situation. But job costing is only a single method which is very useful for better control over cost. For example, we got the order for making 10 school chairs. We can calculate its cost under job costing and will safe it for next order of school chairs. We can also use different techniques to control of different types of job's cost.
2nd Advantage of Job Costing : Apply Corrective Measures So fastly
If we estimate that cost may be more than what is standard cost of job and 50% of job is pending, we can apply fastly more corrective measures. Means for completing next part of job, we can choose other best alternatives for controlling cost.
3rd Advantage of Job Costing : More Co-ordination of Accounting System
To use of job costing method will be useful for accounting system because we can easily record all expenses of specific job order on daily basis.
4th Advantage of Job Costing : Easy to Calculate Overheads for Specific Job
When a company gets specific order, company has already lots of data relating to different indirect expenses which are associated with that particular job. Means how much cost will be of electricity, how much cost will be of depreciation of machine, and others ? So, it is very easy to calculate overheads for a specific job.
Ist Advantage of Job Costing : Better Control over Cost
We are different methods of costing and we use it in different situation. But job costing is only a single method which is very useful for better control over cost. For example, we got the order for making 10 school chairs. We can calculate its cost under job costing and will safe it for next order of school chairs. We can also use different techniques to control of different types of job's cost.
2nd Advantage of Job Costing : Apply Corrective Measures So fastly
If we estimate that cost may be more than what is standard cost of job and 50% of job is pending, we can apply fastly more corrective measures. Means for completing next part of job, we can choose other best alternatives for controlling cost.
3rd Advantage of Job Costing : More Co-ordination of Accounting System
To use of job costing method will be useful for accounting system because we can easily record all expenses of specific job order on daily basis.
4th Advantage of Job Costing : Easy to Calculate Overheads for Specific Job
When a company gets specific order, company has already lots of data relating to different indirect expenses which are associated with that particular job. Means how much cost will be of electricity, how much cost will be of depreciation of machine, and others ? So, it is very easy to calculate overheads for a specific job.
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