Service costing is also called as:

Related MCQs

• The job costing method can therefore be applied in costing batches. The only difference is that a number of items are being costed together as a single unit, instead of a single item or service.
• Process costing provides a system of costing where the following characteristics occur. Identify which of the following are correct:
• A job costing system is usually based on absorption costing principles, and in addition a cost is included for non-production overheads.
• Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.
• Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.
• In service costing division is an / a :
• It is possible to use a job costing system to control the costs of an internal service department, such as the maintenance department and the printing department.
• A situation may arise where both service departments do work for the other service department, as well as the production departments. The secondary apportionment is more complex. The process is called reciprocal apportionment
• Overhead is the cost incurred in the course of making a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.
• The apportionment of production overhead costs might be in two stages: • sharing (or dividing) general costs between production centres and service centres; and • then sharing the costs of the service centres between the production centres.