Job Costing: It is an order-specific costing method, utilized in situations where each job is distinct and is executed to the customer's specifications. Job costing includes keeping an account of direct and in-direct costs.
As both kinds of costs are generally closely related (that is, a job requiring high input of labor and material is probable to consume more power, supervision time, machine time, inspection time, and so on) indirect costs might be applied as an predicted fraction of direct costs. Job costing techniques are alike to contract costing and batch costing techniques, and are employed in construction, motion picture, shipping industries, and in fabrication, repair, maintenance works, and in services like auditing.