What are the Methods of Costing?

Methods of Costing:
Cost may be ascertained by different methods depending upon the type of output and
nature of production.
(1) Job Costing: Companies producing goods against orders use this method to
ascertain the cost and profit or loss in respect of each job undertaken.
(2) Process Costing: It is used in case of continuous operation costing mostly in
industries like oil, textiles, paints, food processors, etc.
(3) Farm Costing: It is extension of utilisation of costing principles to the farms where
the land is used for agricultural production like paddy, potato, mustard, onion, etc.