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State which of the following are the characteristics of service costing.
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
Answer & Solution
Correct Answer:
Option
B
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.
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Loginif the total cost is 1500 units of production
Level is Rs. 13,500 and total cost
at 2000 units of production level is
Ro. 18.000