Operation costing is appropriate for products with the following characteristics.
i. Repetitive mass production
ii. Individual products
iii. Large batches with repetitive processes
iv. Some unique features, some common features
A) i and iii
B) i and iv
C) ii and iii
D) iii and iv

Question

Quizplus · Accepted Answer

Operation costing is suitable for situations where products are produced in large batches with repetitive processes (iii) and have both some unique and some common features (iv). This method combines elements of job costing and process costing, making it appropriate for products that are not entirely uniform but undergo similar processes.

Operation Costing Is Appropriate for Products with the Following Characteristics