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Toy making and biscuit factories typically use:
AProcess costing
BContract costing
CBatch costing
DOperating costing
Answer & Solution
Correct answer: C. Batch costing
1. Batch costing accumulates costs by batch order number.
2. Total batch cost is divided by units in the batch to get unit cost.
3. Batch costing is applicable to toy making, biscuit factories, and medicine industries.
_Source: ICMAI BoS CMA Foundation Paper 2 (Cost Accounting), Module 4 §4.1-4.2 (Methods & Systems of Costing), p. 297-308_
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