Manchester Higher Education (MHE) is a privately owned Business School offering courses in Accounting, Marketing, Management and Hospitality. Students have a chance to choose specializing in one course and chose another course as a minor specialization area. The courses are designed in such a way that all students will take 4 common units and take 4 electives from a list of 6 units in their first year. During second year, student will continue taking 4 major and 2 minor specialization units and 2 common electives out of 3 units. 

During the last year students take 4 major units and 4 minor specialization units. Assume that you are working on an assignment that requires classification of the costing system that is applicable for MHE. 

What type of costing system is appropriate for MHE?