Specific cost, Finance Basics

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2/14/2013 12:42:10 AM

Specific Cost Method Definition:

Within this method specific cost of materials issued is charged to production. While materials are purchased for a particular job, they should be charged to that specific job at their actual cost. This method is appropriate for job order industries which perform individual jobs or contracts against particular orders. This type of method is impracticable to use if purchases and issues are numerous and the materials issued cannot be identified.

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