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Costing methods

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Costing methods

  • This topic has 0 replies, 1 voice, and was last updated 9 years ago by ddnguyen.
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  • May 13, 2016 at 7:32 am #314873
    ddnguyen
    Member
    • Topics: 27
    • Replies: 47
    • ☆☆

    Hi guys

    Could anybody explain to me why question (iii) is None of these costing method?

    Consider the following features and identify whether they relate to job costing, contract costing, service costing or none of these costing methods.

    J = Job costing
    C = Contract costing
    S = Service costing
    N = None of these costing methods

    (i) Production is carried out in accordance with the wishes of the customer.

    (ii) Work is usually of a relatively long duration.

    (iii) Work is usually undertaken on the contractor’s premises.

    (iv) Costs are averaged over the units produced in the period.

    (v) It establishes the costs of services rendered.

    Thanks alot

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