Question

Assume that Apple produces a batch of 1,000 iPhones. Does it account for this as 1,000 individual jobs or as a job lot? Explain (consider costs and benefits).

Short answer

The costs of the 1,000 iPhones should be accounted for as a job or a batch.

Step-by-step solution

Meaning of Job Costing

The concept of "job costing" refers to the accounting of all costs involved in completing a specific task. Keeping track of these costs on a job-by-job basis helps assess profitability.

Explaining the accountability of 1,000 iPhones  

Because created 1,000 goods simultaneously and without any specific distinction, the costs associated with producing 1,000 iPhones should be reported as a job or batch. Additionally, tracking 1,000 products' costs on an individual basis while following the same method would cost the business more money, and the profits from selling these products won't cover the additional expenses. Any business choice must consider the company's associated costs and potential rewards. Any job or project where the expenditures outweigh the rewards is undesirable for the business.