Process service costing measures the average cost of:
A) All services performed by the company in a given period
B) Identical or similar services performed by the company in a given period
C) Activities for activity based costing overhead rates
D) Services received from the company's vendors

Question

Quizplus · Accepted Answer

In process costing, costs are averaged for a given period, as opposed to being calculated for a given job or batch. Therefore, in costing services using process costing (such as a bank calculating the cost of processing deposits or checks), the average cost per unit is calculated for all such services performed during the period (week, month, etc.)

Process Service Costing Measures the Average Cost Of