10. Service and operation costing Flashcards
1
Q
What are the characteristics of a service? (4)
A
- intangibility
- heterogenity
- simultaneous production and consumption
- perishability
2
Q
what is a composite cost unit?
A
cost unit made up of two or more parts
3
Q
how do you work out the cost per service unit?
A
total cost of delivering the service / number of service units