JOB and Batch Costing

Meaning:

Job Costing:

Job costing is the system of costing used to find out the cost of non-standard jobs generally made according to customer's specifications.
Business in which job costing is suitable:
(1) Garage, (2) Tailoring, (3) Printing, (4) Catering, (5) Beauty Parlour, (6) Small manufacturing units, and all business in which work is based on customers order and specific requirement of the customers.

Batch Costing:

Batch costing is only a modification of job costing. The only difference is that in job costing, production is carried on according to specific order of customer, while in batch costing, production is done for stock. In case of batch costing, production is carried on in batches of particular quantity of items to be manufactured.
Business in which job costing is suitable:
(1) Pharmaceutical company, (2) Computer spare parts manufacturing company, (3) Automobile spare parts industries,  (4) Biscuits manufacture, (5) garments manufacture, etc.

Difference Between Job Costing and Batch Costing:

Points	JOB COSTING	BATCH COSTING
Meaning	Job costing refers to a specific costing method, used when the production/work is carried out according to the requirements of customers.	Batch costing, is a form of job costing that is applied when the articles are produced in batches, i.e. a group of like units are produced.
Production	As per customer specification	Mass production
Product	Product have an independent identity, as each job is distinct from other jobs.	Products do not lose their individual identity, as they are manufactured in continuum.
Cost unit	Executed Job	Batch
Cost ascertainment	On the completion of each job.	Ascertained for the whole batch and then per unit cost is determined.