The correct answer is: A. job order business.
Operating costing is a type of costing that is used to determine the cost of each unit of production in a job order business. Job order businesses are those that produce products or services to customer specifications. This type of costing is also known as job costing or production costing.
The main advantage of operating costing is that it provides accurate information about the cost of each unit of production. This information can be used to set prices, determine profitability, and make other important business decisions.
The main disadvantage of operating costing is that it can be time-consuming and expensive to implement. This is because it requires detailed records of all costs associated with each job.
Other options:
B. Contractors are not typically considered to be job order businesses. They typically work on a project basis, and their costs are not typically tracked on a per-job basis.
C. Sugar industries are typically considered to be process industries. Process industries are those that produce products through a continuous process. The costs of production in process industries are typically tracked on a per-unit basis, rather than on a per-job basis.
D. Service industries are typically considered to be non-manufacturing industries. Service industries are those that provide services, rather than products. The costs of production in service industries are typically tracked on a per-unit basis, rather than on a per-job basis.