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Accountancy firm will use service costing or job costing. Please tell which method will be used and why?
Job costing!
Accountancy firms are approached by clients for services. Since they know about individual clients as well as their jobs(Audit, Statements preparation or taxation services) it’s easy to allocate costs to jobs.
Hopefully Sir Moffat agrees.Yes, you are right. On various places, it is said to be service costing. I am even confused. Lets see what Tutor says.
It is service costing (because they provide a service).
They will calculate a cost per hour for their services, and then cost out each job separately depending on how many hours are spent on the job.
Thank you tutor.
And tutor please have some light on Shakoor.jr’s statement.
If each individual client has his own customer-driven job so will accountancy firm use job-costing?
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