CA Inter P4 · Chapter 8 · Question 7 of 9
Job costing is the appropriate method of costing where:
Test yourself: pick an answer
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.
More Unit, Batch and Job Costing MCQs
- Q9The cost of rectifying normal defective work which cannot be identified with any particular job should be treated as:
- Q1Unit (single or output) costing is most suitable for:
- Q2Annual demand for a part is 36,000 units. Set-up cost per production batch is ₹1,500 and the cost of carrying one unit in stock for a year…
- Q3For the same part (annual demand 36,000 units, set-up cost ₹1,500 per batch, carrying cost ₹12 per unit per annum), the total annual…
- Q4Batch costing is most commonly used in which of the following industries?
