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Question

An automobile service unit uses _________ costing.

A
Specific order
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B
batch
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C
Job
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D
Contract
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Solution

The correct option is C Job
Automobile service unit are those units which runs the business of servicing of vehicles. This includes two wheeler or four wheeler servicing. Each vehicle received for service may have unique and different problem or issue which need to be taken care while doing service. These are specific job where the cost of each job will be different.

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