1. Costing Methods
Job
A job is a cost unit which consists of a single order or contract
Job costing
Is a costing method applied where work is undertaken to customers special requirements and each order is of comparatively short duration

2. Cost Plus Pricing
Cost Plus Pricing is the usual method of fixing the selling price where job costing is concerned.
The desired Profit Margin is added to the the total cost to arrive at the selling price.

3. Disadvantages of Cost Plus Pricing
No incentive to cost control as profit is guaranteed
No motivation to tackle inefficiencies or waste
Overheads are apportioned in an arbitrary way and this may lead to under and over pricing

4. Make-up of Job Costs Direct Material + Direct Labour Direct Expenses
= Prime cost
Allocation of Production Overheads
=Factory Cost / Production Cost
Allocation of Other Overhead
=Total Cost

5. Batch Costing
A batch is treated as a job during production and the costs are collected in the same manner as for job costing
When the batch job is complete a cost per unit can be calculated by taking the total batch cost divided by the number of units in the batch

6. Service Costing
Service costing applies where the cost unit is a unit of service
All costs are collected and divided by the unit of service to arrive at a cost per unit of service
Note: the difficulty with this method of costing is the determining realistic cost unit that represents a suitable measure of the service provided