10. Service and operation costing Flashcards

1
Q

What are the characteristics of a service? (4)

A
  • intangibility
  • heterogenity
  • simultaneous production and consumption
  • perishability
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2
Q

what is a composite cost unit?

A

cost unit made up of two or more parts

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3
Q

how do you work out the cost per service unit?

A

total cost of delivering the service / number of service units

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