Cost Unit
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COST UNITS
COSTING: Costing refers to the technique and processes of determining cost of a product manufactured or a service rendered.
Methods of costing: 6.Job
costing. 7.Process costing.
Job costing: Job costing is used where in those business concerns where production is carried out as per specific order and customer specifications. Batch
costing: Batch costing is based upon the concept of contract costing. Each job is separate and distinct from other jobs or products. Eg: nuts and bolts.
Contract
or terminal costing: This method of costing is based upon the principles of job costing is used by house builders and civil contractors.
Multiple
or composite costing: This is used in those industries where the nature of the product is complex. Ex: motor car, airplanes etc.
Process costing: This costing method is used in those industries where production is done continuously such as chemicals, oil, gas papers etc. Unit
or single out-put costing: the method is used where a single item is produced and the final production is composed of homogeneous units. Ex: spark plug, tube light etc.
Operating
or service costing: operating costing method is used by the those organizations which render services and do not manufacture any physical items. Ex: transportation, power houses hospitals etc.
Operation
costing: this method aims at ascertaining the cost of each operation in place of each process. In this method the assumptions is that output is achieved through number of deferent operations
COST UNIT AND METHOD OF COSTING NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
1.
Building
Square foot of area
Job costing
2.
Chemical
Tonne, pound or kilo gram.
Process costing
3.
Cement
Tonne
Process costing
4.
Automobile
No. of units
Process costing
5.
Steel
Tonne
Process costing
6.
Transport
Tonne km, passenger km.
Operating costing
7.
Cable
Meter
Process costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
8.
Gas
Cubic foot or cubic meter
Process costing
9.
Nuts and bolts
Gross or some measure of standard weight
Job costing
10.
Power
Kilo watt per hr. or units
Process costing
11.
Paper
Ream
Process costing
12.
Timber
Cubic foot
Process costing
13.
Brewery
Per dozen bottles or gallon of draught brew
Process costing
14.
Biscuits
Per (WT)
Process costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
15.
Hospital
Per bed/ out patient visit
Operating costing
16.
Case making
Per case
Job costing
17.
Road contractors Per mile/ kilo meter
Job costing
18.
Ice cream
Per gallon
Process costing
19.
Knitted textiles
Per pound/ Kg of fabric
Process costing
20.
Canned fruit
Per dozen cans or per gross cans
Process costing
21.
Soft drinks
Cases of 24 bottles
Process costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
22.
Oil extraction, petro chemicals
Gallon, liters, tonnes.
Process costing
23.
Pharmaceutical
1000 no. tablets, ampulses
Process costing
24.
Machine building
Numbers
Job costing
25.
Readymade garments
Numbers
Batch costing
26.
Aircraft
Numbers
Job costing
27.
Sugar
Tonnes, KGs
Process costing
28.
Furnishing
Each articles by no.
Job costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
29.
Confectionary
Per KG
Process costing
30.
Clothing
Per dozen articles
Process costing
31.
Bicycle manufacturing
Number
Multiple costing
32.
Textile
Meters, yards
Process costing
33.
Flour
Tonnes
Process costing
34.
Parts manufacturing
No. of articles in tens, hundreds, thousands
Process costing
THANK YOU
COSTING: Costing refers to the technique and processes of determining cost of a product manufactured or a service rendered.
Methods of costing: 6.Job
costing. 7.Process costing.
Job costing: Job costing is used where in those business concerns where production is carried out as per specific order and customer specifications. Batch
costing: Batch costing is based upon the concept of contract costing. Each job is separate and distinct from other jobs or products. Eg: nuts and bolts.
Contract
or terminal costing: This method of costing is based upon the principles of job costing is used by house builders and civil contractors.
Multiple
or composite costing: This is used in those industries where the nature of the product is complex. Ex: motor car, airplanes etc.
Process costing: This costing method is used in those industries where production is done continuously such as chemicals, oil, gas papers etc. Unit
or single out-put costing: the method is used where a single item is produced and the final production is composed of homogeneous units. Ex: spark plug, tube light etc.
Operating
or service costing: operating costing method is used by the those organizations which render services and do not manufacture any physical items. Ex: transportation, power houses hospitals etc.
Operation
costing: this method aims at ascertaining the cost of each operation in place of each process. In this method the assumptions is that output is achieved through number of deferent operations
COST UNIT AND METHOD OF COSTING NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
1.
Building
Square foot of area
Job costing
2.
Chemical
Tonne, pound or kilo gram.
Process costing
3.
Cement
Tonne
Process costing
4.
Automobile
No. of units
Process costing
5.
Steel
Tonne
Process costing
6.
Transport
Tonne km, passenger km.
Operating costing
7.
Cable
Meter
Process costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
8.
Gas
Cubic foot or cubic meter
Process costing
9.
Nuts and bolts
Gross or some measure of standard weight
Job costing
10.
Power
Kilo watt per hr. or units
Process costing
11.
Paper
Ream
Process costing
12.
Timber
Cubic foot
Process costing
13.
Brewery
Per dozen bottles or gallon of draught brew
Process costing
14.
Biscuits
Per (WT)
Process costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
15.
Hospital
Per bed/ out patient visit
Operating costing
16.
Case making
Per case
Job costing
17.
Road contractors Per mile/ kilo meter
Job costing
18.
Ice cream
Per gallon
Process costing
19.
Knitted textiles
Per pound/ Kg of fabric
Process costing
20.
Canned fruit
Per dozen cans or per gross cans
Process costing
21.
Soft drinks
Cases of 24 bottles
Process costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
22.
Oil extraction, petro chemicals
Gallon, liters, tonnes.
Process costing
23.
Pharmaceutical
1000 no. tablets, ampulses
Process costing
24.
Machine building
Numbers
Job costing
25.
Readymade garments
Numbers
Batch costing
26.
Aircraft
Numbers
Job costing
27.
Sugar
Tonnes, KGs
Process costing
28.
Furnishing
Each articles by no.
Job costing
NO
INDUSTRY/ ENTERPRISE
COST UNIT
METHOD OF COSTING
29.
Confectionary
Per KG
Process costing
30.
Clothing
Per dozen articles
Process costing
31.
Bicycle manufacturing
Number
Multiple costing
32.
Textile
Meters, yards
Process costing
33.
Flour
Tonnes
Process costing
34.
Parts manufacturing
No. of articles in tens, hundreds, thousands
Process costing
THANK YOU
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