CMA Intermediate · Cost Accounting · Batch Costing
Which industry is the most typical user of batch costing?
Garment manufacturing is a typical batch costing industry because products are made in lots of a style or size. Continuous industries like refining use process costing, power generation uses operating costing, and a bridge is costed as a contract.
- AGarment manufacturing, where lots of a style are made togetherCorrect
- BPetroleum refining with continuous flow
- CElectricity generation
- DConstruction of a bridge for a government agency
Explanation
Batch costing suits industries making products in lots, such as garments, footwear, pharmaceuticals and components. Refining and power generation are continuous, so process or operating costing applies. A bridge is a contract.
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