CHAPTER 10
Job , batch and service costing
TEAM MEMBER:
胡裕华 彭佳玲 张雨婕
Costing Methods
● the way goods are processed or manufactured
● the way services are provided
Topic List
Costing methods
Job costing
工作成本核算
Batch costing
分批成本计算法
Service costing
服务成本核算
Job costing
A job
cost unit
single order
contract
● customs special requirements
●
each order is of comparatively short duration
●
many cost can be directly traced to each job
Job costing
Application
Factory
Workshop
Property repairs
Internal capital expenditure
Job costing
Job costing information
Material costs
Material requisition
notes
Labour times
Job cost sheet
Overhead
Overhead
absorption rates
Job costing
material cost
The estimated cost
The actual cost
Value all items on
the bill of materials
Value material
issues notes
Specially purchased materials
Priced by the purchasing department
Job costing
labour cost
The estimated
labour time
Past experience
of similar work
The actual labour hours
Hours
information
Current
labour rates
Job numbers
Plus bonues,
Overtime
payments etc.
Job costing
Production overheads
The estimated
production overheads
Overhead
absorption rate
The actual
production overheads
Overhead
absorption rate
Actual results
eg:labour hours
Job costing
Rectification costs
Not frequent occurrence
Normal part
charged as a direct cost
to the job concerned
Treated as
production overheads
Cost of all jobs
Overhead absorption rate
Job costing
Pricing the job
Cost plus pricing means that a desired profit margin is added to
total costs to arrive at the selling price.（成本加成定价法）
Selling Price=Profit margin(边际利润)+Total cost(总成本)
=单位成本×（1+成本利润率）
Job costing
The final price quoted will, of course, be affected by
what competitors charge and what the customer
will be willing to pay.
Job costing
计算方法
The selling price：
1 percentage margin
2percentage mark-up.
Job costing
1.based on margin
For example, a selling price based on a 20% margin
means that profit is 20% of selling price.
Cost of job
+Profit
=Selling price
80%
20%
100%
Job costing
2.based on mark-up
A selling price based on a 20% mark-up means that
profit is 20% of cost.
Cost of job
+profit
=Selling price
100%
20%
120%
Job costing
Job costing for internal services
If a job costing system is used
it is possible to charge the user departments for the
cost of specific jobs carried out,
rather than apportioning the total costs of these
service departments to the user departments using
an arbitrarily determined apportionment basis.
Batch costing
Batch costing is similar to job costing in
that each batch of similar articles is
separately identifiable.
一般适用于单件小批复杂试生产的企业，如重型机器制造、船舶制造、
服装加工、印刷等。
Batch costing
Procedures for costing batches
(a) The batch is treated as a job during production and
the costs are collected in the manner.
(b) Once the batch has been completed, the cost per unit
can be calculated as the total batch cost divided into the
number of units in the batch.
Cost per unit=total batch cost/the number of units in the batch
Service costing
Service costing is a costing method concerned
with establishing the costs, not of items of
production, but of services rendered.
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Road, rail and air transport services
Hotels
Education
Hospitals
Catering establishment
Service costing
Specific characteristics of services
 Simultaneity (同时性）
 Intangibility（无形性）
 heterogeneity（差异性）  Perishability（非持久性）
Service costing
Unit cost measures
Service
 Road
Rail and air transport services
 Hotels
 Education
 Hospitals
 Catering establishment
Cost unit
 Passenger /mile or kilometer
Ton/mile
Occupied bed-night
Full-time student
Patient
Meal served
（Cost per until）
Service costing
Service cost analysis
in internal service situations
1.transport costs- is a term used here to
refer to the cost of the transport services used by
a company
2.Canteen costs
Service costing
The usefulness of costing services
that do not earn revenue
Two basic purposes
 To control the costs in the service department.
 To control the costs of the user departments.