ICAEW BIP · Chapter 3 · Question 1 of 8
Which of the following businesses would be most likely to use job costing?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A firm that builds bespoke conservatories to each customer's design
Explanation
Job costing suits work done to individual customer specifications, where each job is separately identifiable and costed. Refineries, breweries and chemical plants produce large volumes of identical output in a continuous flow, which suits process costing.
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