Introduction:
In cost accounting, the concept of operating costing is used to determine the cost of operating a particular activity or process. This includes the identification and allocation of various overhead costs. Overheads are indirect costs that cannot be directly attributed to a specific cost object, such as a product or service. They include expenses like rent, utilities, and administrative costs.

Understanding Operating Costing:
Operating costing is a method used to calculate the cost of providing a service or producing a product. It involves identifying and categorizing the different costs incurred in the production or provision of the service. These costs are then allocated to the cost units based on a suitable cost driver, such as labor hours or machine hours.

Overheads in Operating Costing:
Overheads are an essential component of operating costing. They represent the indirect costs that are incurred in the production or provision of a service. Overheads include costs like rent, utilities, depreciation, and administrative expenses. These costs are necessary for the smooth functioning of the business but cannot be directly attributed to a specific cost unit.

Need for Multiplication:
When it is said that a cost is for "1 trip," it means that the cost is associated with a single occurrence of the activity or process. In operating costing, this cost needs to be allocated to the cost unit based on a suitable cost driver.

To determine the total cost for the required number of trips, the cost associated with one trip needs to be multiplied by the number of trips. This multiplication is necessary to allocate the overhead costs accurately to each cost unit.

For example, if the cost of fuel for one trip is $100 and there are 10 trips, the total cost of fuel for all the trips would be $100 x 10 = $1000.

Conclusion:
In operating costing, overhead costs are allocated to cost units based on a suitable cost driver. When a cost is mentioned for "1 trip," it needs to be multiplied by the required number of trips to determine the total cost. This multiplication ensures that the overhead costs are accurately allocated to each cost unit, providing a more precise calculation of the total operating cost.