Operating costing system is more suitable to :

Related MCQs

• Process costing provides a system of costing where the following characteristics occur. Identify which of the following are correct:
• A job costing system is usually based on absorption costing principles, and in addition a cost is included for non-production overheads.
• Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.
• Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.
• The job costing method can therefore be applied in costing batches. The only difference is that a number of items are being costed together as a single unit, instead of a single item or service.
• First step in process costing system is to
• Process costing is used when output is produced in a continuous process system, and it is difficult to separate individual units of output.
• In a process costing system loss might be:
• In a costing system, a job account is similar to a work in progress account, except that it is for one job only. In a company that specialises in jobbing work, the work in progress account is the total of all the individual job accounts.
• It is possible to use a job costing system to control the costs of an internal service department, such as the maintenance department and the printing department.