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Commerce · Q257

Costing

Graduate and Post Graduate · Commerce · question 257

Q257

Which of the following organisations should not be advised to use service costing?

A.
Distribution service
B.
Hospital
C.
Maintenance division of a manufacturing company
D.
A light engineering company
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A light engineering company should not be advised to use service costing. Service costing is a type of operation costing which is used in organizations which provide services instead of producing goods.