Question
Mr. A is addressing to a the costing technique of his
product to Mr. C and says “Here the cost of completing each stage of work is ascertained, like cost of making pulp and cost of making paper from pulp.” Which type of costing technique is he referring to?Solution
In process costing, the cost of completing each stage of work is ascertained, like cost of making pulp and cost of making paper from pulp. In mechanical operations, the cost of each operation may be ascertained separately.Â
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