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ExamsIBPS POGeneral Awareness

In a cycle manufacturing business, which method of costing is most appropriate?

  1. Job Costing
  2. Process Costing
  3. Batch Costing
  4. Multiple Costing

Correct answer: Multiple Costing

Solution

Cycle manufacturing involves assembling multiple parts and components, so a single costing method like job or process costing is not sufficient. Multiple costing is appropriate because it combines different costing techniques for different parts of the product.

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