Home › CMA Foundation › costaccounting › Methods of Costing › Hospitals, transportation services, and power ge…
Hospitals, transportation services, and power generation units use which method of costing?
AOperating costing
BProcess costing
CJob costing
DContract costing
Answer & Solution
Correct answer: A. Operating costing
1. Operating costing is used in the service sector.
2. A cost sheet computes total cost and divides by service units to get per-unit cost.
3. Hospitals, power generation, and transportation are the examples listed.
_Source: ICMAI BoS CMA Foundation Paper 2 (Cost Accounting), Module 4 §4.1-4.2 (Methods & Systems of Costing), p. 297-308_
Related questions
Which of the following industries is BEST matched with its costing method per ICMAI's refeA bridge construction firm computes the cost of each project undertaken using:Toy making and biscuit factories typically use:Which method of costing is used for products requiring continuous production, such as suga