CA Inter P4 · Chapter 8 · Question 4 of 9
Batch costing is most commonly used in which of the following industries?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Pharmaceuticals and ready-made garments
Explanation
Batch costing is a form of job costing where a lot of identical units is treated as one job, as in pharmaceuticals, garments, toys and components. Electricity uses service costing, continuous refining uses process costing, and construction uses contract-type job costing.
More Unit, Batch and Job Costing MCQs
- Q6In job costing, the cost of spoiled work that is normal and arises because of the exacting specifications of a particular job should be:
- Q7Job costing is the appropriate method of costing where:
- Q8A batch of 500 units incurred direct material ₹42,000, direct labour ₹28,000 and set-up cost ₹6,000. Production overheads are absorbed at…
- Q9The cost of rectifying normal defective work which cannot be identified with any particular job should be treated as:
- Q1Unit (single or output) costing is most suitable for: