Which type of costing do manufacturing firms as well as firms in the service sector find to be a useful tool.
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Standard costing is the most useful tool for both manufacturing firms and firms in the service sector. It helps them to determine the cost of producing products or delivering services by establishing standard costs for various inputs such as labor, materials, and overheads. This enables them to prepare accurate and consistent budgets, track their actual costs against the standards, and identify areas where they can cut costs and improve efficiency. Budgeted and estimated costing are also useful, but they are typically based on assumptions and projections, whereas actual costing can only be done after the fact and is not forward-looking like standard and budgeted costing.

Which Type of Costing Do Manufacturing Firms as Well as Firms