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      Question

      An oil refining industry will undertake costing by the

      _______ method?
      A Single Unit costing Correct Answer Incorrect Answer
      B Job costing Correct Answer Incorrect Answer
      C Batch costing Correct Answer Incorrect Answer
      D Process costing Correct Answer Incorrect Answer
      E 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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