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CA Inter P4 · Chapter 8 · Question 7 of 9

Job costing is the appropriate method of costing where:

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Reveal answer & explanation

Correct answer: C) Work is done against specific customer orders and each order differs from the others

Explanation

Job costing accumulates costs for each job separately because each order is undertaken to the customer's specification and is distinct, as in printing presses, repair workshops and furniture made to order. Continuous homogeneous output suits unit or process costing.

All 9 questions in Chapter 8Unit, Batch and Job Costing MCQs with answers

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