Distinguish between: (i) Casual worker and Outworker (ii) Job and Batch Costing

(i) Casual worker and outworker A worker who is appointed for a short duration to carry on normal business activities in place of a regular but temporarily absent worker. Such a worker is also know as daily wager or ‘badlies'. A casual worker do not enjoy the facilities available to a regular worker. A worker who do not work in the factory premises but either he works in his home or at a site outside the factory is know as an outworker. An outworker who works in a home is usually compensated on the basis of his output. He is supplied with raw materials and tools necessary for carrying out the job. An outworker (outside to factory) is usually engaged on specialized jobs/contract work. (ii) Job and Batch Costing Job Costing: The objective under this method of costing is to ascertain the cost of each job order. A job card is prepared for each job to accumulate costs. The cost of the job is determined by adding all costs against the job it is incurred. This method of costing is used in printing press, foundries and general engineering workshops, advertising etc. Batch Costing: This system of costing is used where small components/parts of the same kind are required to be manufactured in large quantities. Here batch of similar products is treated as a job and cost of such a job is ascertained as discussed under 1, above. For Example, if in a cycle manufacturing unit, rims are produced in batches of 2,500 units each, then the cost will be determined in relation to a batch of 2,500 units.