Section A

ArchDesign is a bespoke architecture firm that designs unique, custom homes for individual clients.

Which costing method is most appropriate for ArchDesign to determine the cost of its services?

Answer options:

Process costing

Batch costing

Job costing

Standard costing

How to approach this question

Identify the nature of the output. Unique, custom, one-off projects require a specific costing method.

Full Answer

C.Job costing✓ Correct

Job costing is a form of specific order costing applied where work is undertaken to customers' special requirements and each order is distinct. Since ArchDesign creates bespoke, unique homes, costs must be collected separately for each specific project (job).

Common mistakes

Selecting batch costing, which applies to multiple identical items produced in one run.

Question 15 All questions Question 17

Practice the full ACCA MA — Management Accounting Practice Exam 6

38 questions · hints · full answers · grading

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