The correct answer is: D. operation costing system
An operation costing system is a hybrid costing system that is applied to batches of similar products, but are not identical. It is a combination of job costing and process costing. In job costing, each job is treated as a separate unit and costs are accumulated for each job. In process costing, costs are accumulated for each process and then allocated to the products produced by that process.
Operation costing is used when a company produces a variety of products that are similar but not identical. For example, a company that produces different types of cars would use an operation costing system. The company would accumulate costs for each type of car and then allocate those costs to the cars produced.
The advantages of operation costing are that it is more accurate than process costing and it is more flexible than job costing. The disadvantages of operation costing are that it is more complex than process costing and it is more difficult to control costs.
Incremental costing is a costing system that focuses on the costs that change as a result of a decision. It is used to compare the costs of two or more alternatives.
Split off costing is a costing system that is used when a joint product is produced and then split into two or more products. The costs of the joint product are allocated to the two or more products based on their relative sales value.
Inventoriable costing is a costing system that is used to track the costs of products that are held in inventory. The costs of these products are then included in the cost of goods sold when the products are sold.
Operation costing is the most appropriate costing system for the given question because it is a hybrid costing system that is applied to batches of similar products, but are not identical.