Question

Operating costing method is used in

Answer 1

Answer:

The emphasis under operating costing is on the ascertainment of cost of rendering services rather than on the cost of manufacturing a product. It is applied by transport companies, gas, and waterworks, electricity supply companies, canteens, hospitals, theatres, schools, etc.

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Answer 2

Answer:

Operating costing is used to identify the cost of each service.Each particular service is considered as a separate unit for identifying the service or operating cost. Examples of organization where the operating costing method is used are nursing homes, Hotels, buses or railways.

For nursing homes, a cost unit may be bed per day.