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    Question

    In a textile mill, cotton passes through spinning,

    weaving, and dyeing departments. Loss occurs at each stage. Which costing method is best suited?
    A Job costing Correct Answer Incorrect Answer
    B Marginal costing Correct Answer Incorrect Answer
    C Marginal costing Correct Answer Incorrect Answer
    D Contract costing Correct Answer Incorrect Answer

    Solution

    Process costing is ideal where production is continuous, and goods pass through multiple stages with standardised output, as in a textile mill.

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