In Batch Costing, with increase in batch size: (A) There is an increase in carrying cost and set-up cost per unit (B) There is a decrease in carrying cost and set-up cost per unit (C) There is an increase in carrying cos

CS Executive · Cost and Management Accounting · PYQS · December 2017
In Batch Costing, with increase in batch size: (A) There is an increase in carrying cost and set-up cost per unit (B) There is a decrease in carrying cost and set-up cost per unit (C) There is an increase in carrying cost and set-up cost per unit is reduced (D) There is a decrease in carrying cost but the set-up cost per unit is increased
(A) There is an increase in carrying cost and set-up cost per unit
(B) There is a decrease in carrying cost and set-up cost per unit
(C) There is an increase in carrying cost and set-up cost per unit is reduced
(D) There is a decrease in carrying cost but the set-up cost per unit is increased

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Batch Costing

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