CAF-5 · Chapter 6 · Question 1 of 10
Which of the following situations is the most appropriate for applying "Job Costing"?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A business entity carrying out separate tasks or contracts to meet specific customer orders and requirements.
Explanation
According to the text, job costing is a basic cost accounting method applicable where work consists of separate contracts, jobs, or batches, and where each job is carried out to the customer's specific instructions or requirements.
More Job and Service Costing MCQs
- Q3What is the primary purpose of a "Job Order Cost Sheet" (or Job Cost Card)?
- Q4In a job costing system, what is the correct double entry to record the issuance of direct materials from the store to a specific job…
- Q5If materials are issued from the store to be used as general maintenance supplies on the factory floor (indirect materials) rather than…
- Q6When production overheads are absorbed into the cost of a specific job based on a predetermined rate, which account is credited?
- Q7A specific job (Job 453) incurs direct materials of Rs. 10,000, direct labour of Rs. 6,000, and direct expenses of Rs. 4,000. Production…