1.
The job costing method may be regarded as the principal method of costing since the basic object and purpose of all costing is to:
A
Analysis and ascertainment of cost of each unit of production
B
Convert loss into profit
C
Control and regulate cost
D
Both 1 & 3
E
Reduce taxes on production
Answer and explanation
Correct Answer: D — Both 1 & 3
The correct answer is D: Both 1 & 3.
The basic object of all costing is to analyse and ascertain the cost of each unit of production, and to control and regulate cost. These principles are valid for all types of industry including printing, furniture, ship-building, and heavy machinery. Determining profitability is also an objective, but options 1 and 3 directly represent the principal purposes.