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Which costing method would be applied on a production line where runs of different
canned food products are interchanged at regular intervals?
1. Joint product costing
2. Batch costing
3. Process costing
4. Job costingThere is no point in simply typing out a test question and expecting to be provided with an answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
Sorry Sir. I found this question on a document which I came across on a group on telegram. There are no answers given in that document.
My answer would be process costing because I think the canned foods need to go through different stages such as fermentation, etc. but I also think its batch costing since the question says different canned foods are interchanged at regular intervals, they must set up the machines differently each time so its probably being produced in batches. I’m confused between these two.
You are right in that it could be either process costing or batch costing (depending on how often the products are interchanged).
You should not be attempting questions found in this way. You should be using a Revision Kit from one of the ACCA Approved Publishers. They are typical of questions that can actually be asked in the exam (and they have answers and explanations).
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