What is a primary consideration of order-specific costing?

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Order-specific costing is primarily concerned with the unique requirements and specifications of individual customer orders. This method allows organizations to accurately allocate and track costs associated with each specific order, including materials, labor, and overhead that are tailored to meet those particular customer needs. By maintaining detailed records of customer specifications, businesses can ensure that they are providing precisely the products that have been requested, which enhances customer satisfaction and supports accurate pricing strategies.

The other choices do not accurately represent the essence of order-specific costing. Tracking only variable costs does not comprehensively reflect the full cost structure required for fulfilling custom orders. Focusing solely on fixed costs overlooks the variable aspects of production that can fluctuate based on the specific order. Standardizing costs for bulk production conflicts with the foundational principle of order-specific costing, which emphasizes customization and individual order tracking rather than uniformity in cost calculation.

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