ACCA MA · Chapter 8 · Question 1 of 12
For which of the following businesses would job costing be most appropriate?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A firm that designs and fits bespoke kitchens to each customer's requirements
Explanation
Job costing suits work done to each customer's specific order, where each job is separately identifiable and usually short. A refinery and a brewery would use process costing, and a bus company would use service costing.
More Job, batch and process costing MCQs
- Q3A batch of 500 units incurs the following costs: direct materials $3,000, direct labour $1,800 and machine set-up $450. Production…
- Q4A process takes in 10,000 kg of material costing $46,000, and conversion costs are $20,600. Normal loss is 4% of input and can be sold as…
- Q5A process takes in 10,000 kg of material costing $46,000, and conversion costs are $20,600. Normal loss is 4% of input and can be sold as…
- Q6A process takes in 5,000 units costing $27,000 in total. Normal loss is 10% of input and has no scrap value. Actual output was 4,600…
- Q7In a process with no opening work in progress, 8,000 units were started. 6,500 units were completed, and 1,500 units were still in…