IDENTIFY the method of costing in the following cases and give one example of industry where this method is followed: (i) Cost of each job is…
CA Intermediate · Cost and Management Accounting · MTP · January 2025
IDENTIFY the method of costing in the following cases and give one example of industry where this method is followed: (i) Cost of each job is ascertained separately. It is suitable in all cases where work is undertaken on receiving a customer's order. (ii) Cost of completing each stage of work is ascertained. (iii) Each group is treated as a unit of cost and thus separately costed. Here cost per unit is determined by dividing the cost of the group by the number of units produced. (iv) A combination of two or more methods of costing.
Suggested Answer and Working Notes:
Identification of method of costing: S. No. Method of costing Example of industry where this method is followed (i) Job Costing Printing press (ii) Process Costing Paper and Pulp (iii) Batch Costing Bakery (iv) Multiple Costing Bicycles
Topics: Process & Operation Costing, Unit & Batch Costing
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