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An accounting firm uses job costing. Which it does not use service costing? As it is providing service by auditing companies.
These are not mutually exclusive:
1 A company can supply products or services.
2 Both these can be mass produced/delivered (batch or process costing) or made to specific customers’ orders (job costing). Services are more likely to be job costed but not necessarily.
Supply of an auditing service is job costed as it is unique to a client; supply of telephone technical support by a supplier could be batch costed ie average cost per phone call.
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