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 projects. It is often used in industries where the products or services are unique or customized to the customer’s requirements.
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 price that the customer is charged.
Job costing is a very accurate way of tracking costs, but it can be time-consuming and expensive to implement. It is typically only used in industries where the products or services are high-value or where there is a high level of customization.
The other options are incorrect because they do not accurately describe the type of costing system that is used when the work is undertaken to Customer’s special requirements and each order is of comparatively short-duration.
- Batch costing is a type of costing system that is used to track the costs of groups of similar products or services that are produced in batches.
- Operation costing is a type of costing system that is used to track the costs of individual operations or processes.
- Output costing is a type of costing system that is used to track the costs of producing a certain amount of output.