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Sir
Why is it difficult to identity cost units in service industriesFor example how sir
Think about a dentist.
What is the cost unit?
You do not always know what work needs doing until the dentist tells you.
Even then, if (for example) it needs a filling then each one is different (some teeth are different than others, some teeth need more work than others.)How? Just because you have more teeth needing to be filled does not mean that each tooth needs the same about of work. Some fillings are very quick and easy, others need more work and take longer.
So that means sir
Can we say the dentist should do job costing here ?
Because even though he needs to treat every teeth and every patient differently
The teeth ( which is the product ) is tangible . ( and we cannot say the dentist is doing a service .
Because he uses
Machines
And equipments to repair the product ( teeth )
( using job costing )Similarly
In a production company
The labors use the machines and equipments to
Repair the products as a completed unit ..
( but here they may not use job costing )No. Job costing is more relevant when a product is being produced.
The dentist may obviously have costs of equipment, but the main cost is the time spent by the dentist because he/she is delivering a service.
No. Job costing is more relevant when a product is being produced.
The dentist may obviously have costs of equipment, but the main cost is the time spent by the dentist because he/she is delivering a service.
No. Job costing is more relevant when a product is being produced.
The dentist may obviously have costs of equipment, but the main cost is the time spent by the dentist because he/she is delivering a service.
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