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Question

___________ is the most suitable method in a transport industry.

A
Operation costing
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B
Service costing
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C
Process costing
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D
Job costing
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Solution

The correct option is B Service costing
Service costing is used in the industries which are providing services. Product costing is used to find out the cost of a unit produced. Service industries like transport industry, canteen etc are using the service costing.

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