Batch Costing for Bulk Standardized Production

Steps:

• Identify the product: Bricks are identical, discrete items produced in large quantities.
• Assess order size: 20,000 bricks represents a substantial batch, not a custom or single unit.
• Recall costing methods: Pricing for such orders uses batch costing to allocate costs over the production run.
• Select matching option: Batch fits standardized bulk goods like bricks.

Why A is correct:

• Batch costing calculates total costs for a group of identical units produced together, ideal for pricing orders of discrete items like bricks.

Why the others are wrong:

• B. Job: Applies to unique, custom projects, not mass-produced identical bricks.
• C. Marginal: Focuses on variable costs for decision-making, not overall order pricing.
• D. Unit: Used for continuous processes like chemicals, not batch production of solids like bricks.

Final answer: A