CMA Intermediate · Cost Accounting · Job Costing
Which industry is the LEAST suitable for the application of job costing?
A cement plant making standardised cement continuously is least suited to job costing. Job costing needs distinct, customer-specific orders, as in printing, special machines or repairs. Continuous homogeneous output is costed under process costing instead.
- AA printing press executing wedding card orders
- BA cement plant producing standardised cement in a continuous processCorrect
- CA machine tool firm building special-purpose machines to order
- DA repair garage handling individual vehicle repairs
Explanation
Job costing suits industries producing distinct, customer-specific work such as printing, special machines and repairs. A cement plant has continuous, standardised mass production where output is homogeneous, so process costing fits. Hence it is the least suitable for job costing.
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