Which method of costing would you recommend for a drug manufacturing company?

  1. Unit costing
  2. Contract costing
  3. Batch costing
  4. Operating costing
3. Batch costing

Drugs are manufactured in batches. radio sets, television sets, watches, manufacture of bicycles, two-wheelers, automobiles, industries producing nuts, bolts, screws, etc. are also manufactured in batches.

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