Job Costing Tracks Specific Orders

Steps:

• Identify the scenario: quotation for a unique job of 100 leaflets, not mass production.
• Note costs included: direct materials, direct labour, and allocated overheads, totaling full absorption cost.
• Observe profit addition: 25% on total cost for pricing the specific job.
• Conclude method: tracks and prices individual customer orders, matching job costing.

Why B is correct:

• Job costing accumulates direct materials, labour, and overheads for identifiable, custom jobs like this leaflet order.

Why the others are wrong:

• A: Absorption costing allocates overheads broadly across products, not tied to specific jobs.
• C: Marginal costing uses only variable costs, ignoring fixed overheads included here.
• D: Unit costing applies to continuous, identical units, not one-off custom quotations.

Final answer: B