Question

In which of the following industry, batch costing will be used?

A Construction Correct Answer Incorrect Answer
B Drug manufacturing Correct Answer Incorrect Answer
C Automobile manufacturing Correct Answer Incorrect Answer
D Interior designing Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Batch Costing is used when production consists of limited repetitive work and definite no. of identical products are being manufactured. Batch is a cost unit consisting of identical items. As such it will be used on pharma and drug industry.

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