ECONOMICS

Detailed explanation-1: -Job order costing is used to value inventory when the product or service is made-to-order, and standard costing is used when products are identical to each other. Costs for raw materials, labor, and overhead are calculated and included in an item’s standard cost.

Detailed explanation-2: -Standard costing is technique which is more useful in manufacturing industries. Bricks, cement, fertilizers, sugar etc are the type of industries in which standard costing is more useful.

Detailed explanation-3: -Answer and Explanation: Option (D) is the correct answer. Standard cost is used as the tool for measuring efficiency for controlling the cost of production. Standard cost is part of the cost accounting process.

Detailed explanation-4: -It is not suitable for industries producing non-standardized products. It is of little value in job or contract costing. Also it is difficult to apply this system when production takes more than one accounting period. 5.