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Commerce · Q149

Costing

Graduate and Post Graduate · Commerce · question 149

Q149

The costing method which can be used in industry where the product pass through different processes is known as ________.

A.
job costing
B.
operating costing
C.
batch costing
D.
process costing
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The costing method which can be used in industry where the product pass through different processes is known as process costing. Process costing is used when there is mass production of similar products, where the costs associated with individual units of output cannot be differentiated from each other.