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Service Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Service Costing

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
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  • August 22, 2021 at 10:42 am #632516
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    Which of the following is not typically a feature of service costing?
    A. Allocating costs between fixed and variable elements
    B.Accurate time recording
    C. Accuracy in valuing work in progress
    D.Unique nature of the work

    Answer is D. Can you explain sir? Isn’t it quality of Service?

    August 22, 2021 at 10:56 am #632519
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    Service costing will normally be calculating the cost per hour of delivering a service when the service is a standard service (not unique).

    August 22, 2021 at 11:17 am #632523
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    And sir, Services are not unique? Like one service would not be different to other?

    August 22, 2021 at 4:01 pm #632545
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    They can be different but then we would not use service costing.

    However where did you find this question because it is very strange (mentioning work in progress which is not typically a feature of service costing!!)

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