NTA UGC NET COMMERCE | ACCOUNTING | NTA OCT 2020 QS SOLVED| PROCESS COSTING

October 2020 Paper II
Q. Process costing is appropriate for which of the following firms?
A. Logistic & Transportation firms
B. Pharmaceutical & healthcare firms
C. Tourism & hospitality firms
D. Oil refining firms
Choose the correct options
(a) A & C (b) B &C
(c) A,B, & C (d) D only
Ans : (d)

Process costing is a form of operation costing& which is used to ascertain the cost of the product at each process or stage of manufacture, where processes are carried. Many industries adopt process costing. Process costing systems can usually be devised in all industries except where job, batch, or unit operation costing is necessary. Industries, where process costing applied:
*Chemical works *Oil refining
*Soap making *Food products
*Box making *Milk dairy
*Distillation process *Textile
*Paper mills *Meat products factory
*Biscuit works *Coke works