Q48
Batch costing is useful to determine ________.
A.
maximum quantity of output
B.
minimum quantity of output
C.
economic batch quantity
AnswerD.
profit of batches
Answer: Option C
Solution
Answer: Option C
Solution:
Batch costing is useful to determine economic batch quantity. In each batch, there are a number of units. The ascertainment of economic batch quantity is very useful. Economic batch quantity may be calculated by using the formula meant for calculating Economic Order Quantity (EOQ) in case of material control.