The correct answer is D. process costing.
Process costing is a costing method used to assign costs to large quantities of identical or similar products that are produced in a continuous process. It is used in industries where the product pass through different processes, such as the chemical, oil, and gas industries.
In process costing, costs are assigned to products based on the amount of time or resources that each product uses. This is in contrast to job costing, which is used to assign costs to individual jobs or batches of products.
Process costing is a more complex costing method than job costing, but it is necessary in industries where the product pass through different processes.
A. Job costing is a costing method used to assign costs to individual jobs or batches of products. It is used in industries where the product is unique or made to order, such as the construction, furniture, and shipbuilding industries.
B. Operating costing is a costing method that is used to assign costs to the different activities that are performed in an organization. It is used to help managers make decisions about how to allocate resources and improve efficiency.
C. Batch costing is a costing method that is used to assign costs to batches of products that are produced in a continuous process. It is used in industries where the product is not identical or similar, but is produced in batches, such as the food and beverage industry.