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Hello sir,
How do we identify if the business is using Unit, Job or Batch costing? Like a brick manufactures ll use batch costing but what about Co.s Manufacturing Fizzy drinks? do they go with Batch costing aswell?They will almost certainly be using batch costing, but that is not for you to decide if it is a calculation question. If it is a calculation question, then the exam question will make it clear.
In a non-calculation question, you could only be asked ‘what is the most likely’ (because there are no rules – it is up to the company to decide how they want to do their costings). In that case, however, the most likely would certainly be batch costing.
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