Bank Theory

Costing Methods - Bank Theory Costing Methods 1. Unit and Output Costing Used in industries producing a single product in mass. Example: Brick, cement, and oil industries. Cost per unit = Total cost / Number of units produced 2. Job Costing Costing for specific jobs with unique specifications. Each job is separately identifiable. Job Cost Card includes direct materials, labor, and overheads. 3. Batch Costing Used when similar items are produced in batches. Example: Pharmaceuticals, toys. Cost per unit = Total batch cost / Number of units in batch 4. Contract Costing Used for long-term construction contracts. Example: Road, bridge construction. Progress Payments: Made during contract progress. Retention Money: Portion withheld until contract completion. Escalation Clause: Compensates for price fluctuations in materials/labor. 5. Process Costing Used where products go through continuous proces...