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Hi john sir:
John sir does all service industries use service costing? I read in a question that audit firm use job costing because it works according to customer request. plz explain me with some other examples.Thanx
A business can use whatever type of costing is more useful for them – there are no rules.
With a service industry like a hotel, it might be sensible to calculate an average cost per room/night (dividing total costs by total room/nights). They could then decide on the amount to charge per room/night.
For an audit firm, every job is different which is why they might use job costing.
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