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  Limitations of Job Costing

Limitations of Job Costing

Job costing suffers from certain limitations. These are as follows.

Ø   It is state that it is too time consuming and needs detailed record keeping. This creates the method more expensive.

Ø   Record keeping for several jobs might prove complicated.

Ø   Inefficiencies of the organization might be charged to a job even nthough it may not be responsible for the same.

Despite of the above limitations, it can be said that job costing is a very helpful method for computation of the cost of a job. The restriction of time consuming can be eliminated through computerization and this can also decrease the complexity of the record keeping.

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