Why is costing necessary in work?
Answer and explanation
Correct answer: To fix an appropriate price for a product or service and estimate profit
Costing involves calculating expenses such as materials, labour, transport, and other costs. It helps in fixing a suitable selling price for a product or service and estimating the likely profit. Selling without keeping accounts is not the purpose of costing. Exam tip: remember the relationship among cost, selling price, and profit.
Frequently asked questions
What is the correct answer to this question?
To fix an appropriate price for a product or service and estimate profit
Why is this the correct answer?
Costing involves calculating expenses such as materials, labour, transport, and other costs. It helps in fixing a suitable selling price for a product or service and estimating the likely profit. Selling without keeping accounts is not the purpose of costing. Exam tip: remember the relationship among cost, selling price, and profit.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Work, careers and livelihood.
