[amp_mcq option1=”Maintain Cost Centre” option2=”Use Cost Centre for Job Costing” option3=”Both a & b” option4=”None of these” correct=”option3″]
The correct answer is: C. Both a & b
To activate Job Costing, you need to activate both Maintain Cost Centre and Use Cost Centre for Job Costing.
Maintain Cost Centre allows you to create and manage cost centres. A cost centre is a unit of your business that incurs costs. You can use cost centres to track costs for different departments, projects, or products.
Use Cost Centre for Job Costing allows you to use cost centres to track costs for jobs. A job is a unit of work that you do for a customer. You can use cost centres to track the costs of materials, labour, and overhead for each job.
If you do not activate both of these options, you will not be able to use Job Costing.