Purushottam Sir Costing Classes

Costing Classes for CA Inter, CMA Inter (Paper 8), CA Final & CMA Final
(Paper 15) – www.purushottamaggarwal.com

JOB AND BATCH COSTING

Job Costing is that form of specific order costing under which each job is treated as a cost unit and costs are ascertained
separately for each job. A job may consist of a job, product, contract, a service or any other specific order.

Batch Costing is that form of specific order costing under which each batch is treated as a cost unit and costs are accumulated
and ascertained separately for each batch. Each batch consists of a number of like units.

Example:- Batch costing states that cost per unit shall be less as number of units increases and total cost of batch shall
increase as number of units increases in a batch. Example Rs. 200 for 100 visiting cards while Rs.300 for 200 visiting
cards etc.

Economic Batch Quantity (EBQ) (Similar as Economic order quantity)

EBQ refers to the optimum quantity batch at which Set up & Processing Costs and Carrying Costs are together minimised.

E.B.Q = √

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