Which of the following statements regarding service costing is true?
A) Service costing is used by manufacturing firms only.
B) Service costing is less relevant in a high uncertainty environment.
C) Mass services firms are a type of service organisation.
D) Mass shops are a type of service organisation.

Question

Quizplus · Accepted Answer

Service costing is not limited to manufacturing firms but can be used by any organisation providing a service. Mass services firms are a type of service organisation that offer standardised services to a large number of customers. Mass shops, on the other hand, are a type of retail organisation that sells standardised products to a large number of customers. Option B is incorrect as service costing can be useful in a high uncertainty environment to help organisations accurately allocate costs and make informed pricing decisions.

Which of the Following Statements Regarding Service Costing Is True