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Batch costing is useful to determine ________.

A. maximum quantity of output

B. minimum quantity of output

C. economic batch quantity

D. profit of batches

Answer: Option C

Solution(By Examveda Team)

Batch costing is useful to determine economic batch quantity. In each batch, there are a number of units. The ascertainment of economic batch quantity is very useful. Economic batch quantity may be calculated by using the formula meant for calculating Economic Order Quantity (EOQ) in case of material control.

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