CIMA BA2 · Chapter 5 · Question 1 of 10
For which of the following businesses would JOB costing be most appropriate?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A firm that designs and fits made-to-measure kitchens for individual householders
Explanation
Job costing is used where work is carried out to individual customer specifications and each order is separately identifiable. A made-to-measure kitchen is a unique job. Refining, brewing and cement production involve continuous output of identical units, so process costing is suitable.
More Job, batch and process costing MCQs
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- Q6Input to a process was 5,000 litres at a total cost of $27,000. Normal loss is 10% of input and is sold as scrap for $1.50 per litre…
- Q7A process has no opening work in progress. During the period 9,000 units were started, of which 7,400 were completed. The 1,600 units in…