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    5. Which costing method is most suitable for the oil refining industry?

    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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