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Commerce · Q164

Costing

Graduate and Post Graduate · Commerce · question 164

Q164

Which method of costing can be used in furniture manufacture industry?

A.
Job costing
Answer
B.
Contract costing
C.
Process costing
D.
Specific order costing

Answer: Option A

Solution

Answer: Option A
Solution:
Job costing method of costing can be used in furniture manufacture industry. A job card is made for each work or job. This method of costing is used in the factories which produce the machine tool and other engineering products, furniture projects, hardware and interior decoration. This method of costing is also called a piece of work costing or terminal costing.