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Limitations of Job Order Costing

(i)                 Cost comparison among different jobs becomes difficult or meaningless because there may be major economic changes.

(ii)               Job costing is a historical costing in nature, so it may not be useful for future planning and control.

(iii)             Job costing system cannot be operated effectively without having a sound production control system.

(iv)             Job costing is expensive.

(v)              It requires more clerical work for cost collection of each job.