Q.(b) What is process costing ?

Batch costing is suitable for readymade garments.

Readymade garments of a given size/design are manufactured together in identical lots (batches). Batch costing treats each batch as a cost unit, accumulates the cost of the whole batch, and finds cost per garment as:

• Cost per unit = Total cost of the batch ÷ Number of units in the batch. …

Continuous, mass production of a standard product is costed under Process costing.

This is a classic CHSE Odisha +2 Class-12 Cost Accounting objective on methods of costing (the Odisha commerce syllabus aligns with the NCERT/CBSE cost-accounting framework).

• Process costing is used where production is continuous and the product passes through several distinct processes/stages. Cost is accumulated for each process and then spread over the units produced — e.g. sugar, chemicals, paper, cement. …

The sugar industry uses Process costing.

Sugar manufacture is a continuous, mass-production activity: cane juice passes through successive processes — extraction/crushing, clarification, evaporation, crystallisation, centrifuging — to yield a uniform product.

…

Process costing is used for continuous, mass-production industries where the product flows through successive processes — an oil mill fits this, so (b) is correct.

This CHSE Odisha +2 Class-12 Cost Accounting question tests which industry uses process costing, a common CBSE/NCERT-aligned commerce topic. Process costing is applied where:

• Production is continuous and the output is homogeneous (identical units).
• The product passes through several distinct processes in sequence, the finished output of one process becoming the raw material of the next.
• Cost is ascertained process-wise and then averaged over units produced.

Checking the options:

• (a) TV industry — assembly of distinct components, closer to job/batch work. …

Job costing applies where work is done on identifiable, customer-specific orders — a printing press does exactly this, so (c) is correct.

This CHSE Odisha +2 Cost Accounting question (NCERT/CBSE-aligned commerce) tests job costing, used when:

• Production is undertaken against specific orders, each job being different.
• Cost is accumulated separately for each job.

Checking options:

• (a) Brick industry — mass, uniform output → process/unit costing. …

Contract costing applies to large, long-duration, site-based jobs like building and civil works — the construction industry, option (d).

This CHSE Odisha +2 Cost Accounting (NCERT/CBSE-aligned) item tests contract costing, a form of job costing used for:

• Large jobs carried out at a site (not in the factory).
• Work that runs over a long period (sometimes more than a year). …

The two basic methods of costing are job costing and process costing; the rest are variants — option (b).

In +2 Class-12 Cost Accounting (CHSE Odisha, NCERT/CBSE-aligned), there are two fundamental methods:

• Job costing — where output consists of separate, identifiable jobs/orders (batch costing, contract costing are its variants). …

Marginal costing is a technique of cost analysis/decision-making, not a method of ascertaining cost — so (b) is the odd one out.

This CHSE Odisha +2 Cost Accounting item distinguishes methods from techniques:

• Methods of costing (how cost is ascertained for a kind of production): job, batch, contract, process, operating, etc. …

Multiple costing suits a complex product assembled from many components (each costed by its own method) — an aircraft, option (a).

This CHSE Odisha +2 Cost Accounting question tests multiple (composite) costing, used where:

• The finished product consists of many different parts/components.
• Different components require different costing methods, which are then combined to find the total cost. …

The item that is not a method of costing is (c) Standard costing.

• Methods of costing suit the nature of the product/production: job, batch, contract, process, operating, unit (single/output) costing, etc. Contract costing, batch costing and process costing are all methods. …