The correct answer is: A. Job costing.
Job costing is a type of costing system that is used to track the costs of individual jobs or batches of products. It is often used in industries where products are made to order, such as furniture manufacturing.
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 very accurate way of tracking costs, but it can be time-consuming and expensive to implement. It is only suitable for businesses that produce a relatively small number of products or jobs.
The other options are incorrect because they are not suitable for the furniture manufacturing industry.
- Contract costing is a type of costing system that is used to track the costs of long-term contracts. It is often used in industries where projects are completed over a period of time, such as construction.
- Process costing is a type of costing system that is used to track the costs of products that are produced in a continuous process. It is often used in industries where products are made in large quantities, such as oil refining.
- Specific order costing is a type of costing system that is used to track the costs of individual orders. It is often used in industries where products are made to order, such as furniture manufacturing. However, specific order costing is not as accurate as job costing because it does not track the costs of individual jobs or batches of products.