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Job costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Job costing

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • April 19, 2019 at 5:49 am #513467
    johnmn1234
    Member
    • Topics: 17
    • Replies: 4
    • ☆

    Which one of the following firms is most likely to use a system of job costing?
    A. A company that manufactures motor cars on a production line
    B A telephone company that provides mobile telecommunications services
    C chemical manufacturer that produces processed chemicals
    D. A company that installs elevators in office buildings
    I am hesitating between B and D but im not sure which one? Can you explain to me please?

    April 19, 2019 at 7:30 am #513477
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54711
    • ☆☆☆☆☆

    The answer is D because each installation is going to be different (building are different heights for example) and so each job will be costed separately.

    A mobile phone company is providing the same service to everyone.

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