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Commerce · Q256

Costing

Graduate and Post Graduate · Commerce · question 256

Q256

State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units

A.
(1) only
B.
(1) and (2) only
Answer
C.
(2) only
D.
(2) and (3) only

Answer: Option B

Solution

Answer: Option B
Solution:
The following that are the characteristics of service costing are High levels of indirect costs as a proportion of total costs and Use of composite cost units.