The correct answer is: job costing.
Job costing is a type of costing system that is used to track the costs of individual jobs or units of production. It is often used in industries where products are made to order, such as the automobile industry.
In job costing, each job is assigned a unique number and all of the costs associated with that job are tracked separately. This includes the costs of materials, labor, and overhead. The total cost of each job is then used to determine the selling price of the product.
Job costing is a more accurate way of costing products than other methods, such as process costing. This is because it takes into account the specific costs associated with each job. This information can be used to make better decisions about pricing, production, and inventory levels.
Here is a brief explanation of each option:
- Process costing is a type of costing system that is used to track the costs of a process or production run. It is often used in industries where products are made in large quantities, such as the chemical industry.
- Batch costing is a type of costing system that is used to track the costs of a batch of products. It is often used in industries where products are made in batches, such as the food processing industry.
- Multiple costing is a type of costing system that uses a combination of different costing methods. It is often used in industries where products are made in a variety of ways, such as the electronics industry.
- Job costing is a type of costing system that is used to track the costs of individual jobs or units of production. It is often used in industries where products are made to order, such as the automobile industry.