Specific order costing methods are appropriate for organizations which produce cost units which are separately identifiable from one another.

Related MCQs

• Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.
• Which of the following procedure is incorrect for attributing overhead costs to cost units? I. Collecting production overhead costs by item II. Establishing cost centres III. Allocating and apportioning overhead costs to cost centres IV. Apportioning service cost centre costs to production cost centres V. Absorbing production cost centre costs into cost units
• If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
• If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
• The point at which joint products and by-products become separately identifiable is known as:
• If total incurred cost in a production process are ₹30000 and number of output units are 5000 units, then units cost will be
• Allocation is where overheads are allocated to cost centres. If a cost centre is responsible for the entire cost of an item of expenditure, the entire cost is charged directly to the cost centre.
• Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.
• A job costing system is usually based on absorption costing principles, and in addition a cost is included for non-production overheads.
• The normal loss is something that is unavoidable in order to get the good output. The cost of the lost units is part of the cost of obtaining the good output.