Home » Costing » Operating costing is more suitable for ________ industries
profit
Services
Profit and service
government organisation
Answer is Right!
Answer is Wrong!
The correct answer is: B. Services
Operating costing is a type of cost accounting that focuses on the costs associated with providing a service. It is most suitable for industries that provide services, such as healthcare, hospitality, and education.
Operating costing is different from product costing in that it does not focus on the costs of producing a product. Instead, it focuses on the costs of providing a service. This includes the costs of labor, materials, and overhead.
Operating costing is important for businesses that provide services because it helps them to understand their costs and to make decisions about how to improve
75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/>
Subscribe on YouTube
their profitability.
Here is a brief explanation of each option:
Profit-making industries are those that sell goods or services in order to make a profit. Operating costing is not as suitable for these industries because it does not focus on the costs of producing a product.
Service industries are those that provide services rather than goods. Operating costing is most suitable for these industries because it focuses on the costs of providing a service.
Some industries are both profit-making and service-providing. For example, a restaurant is a profit-making business that provides a service (food). Operating costing can be used in these industries, but it is not as necessary as it is in service industries.
- D. Government organisation
Government organizations are not profit-making and do not provide services in the same way that businesses do. Operating costing is not suitable for these organizations.