STATE the method of costing and the suggested unit of cost for the following nature of output along with the one example of industry. Nature of…
CA Intermediate · Cost and Management Accounting · MTP · September 2025
STATE the method of costing and the suggested unit of cost for the following nature of output along with the one example of industry. Nature of Output Method Cost Examples of Industries A Series of Processes Similar units of a Single Product, produced by Single Process Customer Specifications: single Unit Consisting of multiple varieties of activities and processes
Suggested Answer and Working Notes:
The following table summarises the various methods of costing applied in different industries: Nature of Output Method Cost Examples of Industries A Series of Processes Process costing or Operation Costing For each process Sugar Similar units of a Single Product, produced by Single Process Unit or output or Single Costing For the entire activity, but averaged for the output Cold Drinks Customer Specifications: single Unit Job Costing For each order/ assignment/job Advertising Consisting of multiple varieties of activities and processes Multiple Costing Combination of any method Car Assembly
Topics: Process & Operation Costing, Unit & Batch Costing
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