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 Batch costing Service 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 ● customs special requirements 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

Internal capital expenditure Job costing Application Factory Workshop Property repairs Internal capital expenditure

Job costing information Material costs Labour times Overhead Overhead absorption rates Material requisition notes Job cost sheet

Specially purchased materials 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 The actual labour hours labour time The actual labour hours Hours information Current labour rates Past experience of similar work Job numbers Plus bonues, Overtime payments etc.

Job costing Production overheads The estimated production overheads The actual production overheads Overhead absorption rate Actual results Overhead absorption rate eg:labour hours

Job costing Rectification costs Normal part Not frequent occurrence 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 The selling price： 1 percentage margin 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 80% +Profit 20% =Selling price 100%

Job costing 2.based on mark-up Cost of job 100% +profit 20% A selling price based on a 20% mark-up means that profit is 20% of cost. Cost of job 100% +profit 20% =Selling price 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。

Procedures for costing batches 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. Road, rail and air transport services Hotels Education Hospitals Catering establishment

Specific characteristics of services Service costing Specific characteristics of services Intangibility（无形性） Perishability（非持久性） Simultaneity (同时性） heterogeneity（差异性）

Unit cost measures Service costing Service Cost unit （Cost per until） Road Rail and air transport services Hotels Education Hospitals Catering establishment Passenger /mile or kilometer Ton/mile Occupied bed-night Full-time student Patient Meal served （Cost per until）

in internal service situations 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

The usefulness of costing services that do not earn revenue 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.