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      Question

      Which costing method is most suitable for the oil

      refining industry?
      A Job costing Correct Answer Incorrect Answer
      B Batch costing Correct Answer Incorrect Answer
      C Process costing Correct Answer Incorrect Answer
      D Contract costing Correct Answer Incorrect Answer

      Solution

      Oil refining is a continuous production process, so costs are averaged over large volumes, making process costing ideal.

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