5. Continuous costing is also called
(A) Operation costing
(B) Process costing
(C) Batch costing
(D) Contract costing
Answers
Continuous costing is also called
(A) Operation costing
(B) Process costing ✔
(C) Batch costing
(D) Contract costing
Explanation:-
• Continuous costing are also called process costing because industries that adopt continuous costing process will continuously manufacture the commodities.
• This implies that the same cost of material, labor and overhead charges to each unit of the production process.
• Continuous costing- it's a method of costing that is used to find out the cost of a product at each operation stage.
• In this process, the finished product of one process becomes one of the raw material for the next process and until of the final product is recieved.
Answer:
Required Answer :-
Process Costing ✓
Explanation :-
It is a process in accountancy which is used to find the direct cost.
Reason for using :-
- Product are borrowed in large amount but they sold in small quantities.
- The cost of products must be transferred to finished goods.
It is also known as continuous Costing