Which of the following is not used in service costing?
A
Electricity
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B
Hospitals
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C
Transport
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D
Electronics
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Solution
The correct option is C Electronics
Operating costing is more or less similar to unit costing. The operating costing gives more emphasis providing on service rather than cost manufacturing a unit. The operating costing is also called service costing. Service costing means rendering services to the other organization or public for which cost is accumulated.
Unit costing method is used in electronic industry to know the cost of each product.