Higher Accounting - Service Costing

Service costing is used when a function is provided to the customer rather than actual tangible __________?

• Products
• Overheads
• Materials
• Profits

Which type of company below is unlikely to use service costing?

• Taxi company
• Hairdresser
• Private hospital
• House builder

By day, week, month or year are all examples of ....?

• Time periods
• Types of costing
• Cost centres
• Types of service

By day, week, month or year are all examples of ....?

• Time periods
• Types of costing
• Cost centres
• Types of service

Which type of costs for a bus company will probably involved a fraction in the calculation of cost per year?

• Tyres and servicing
• Drivers and petrol
• Tyres and petrol
• Drivers and servicing

Depreciation of an asset can be found in a service costing statement for a bus company.
True of False?

• True

• False

Which is unlikely to be a valid cost unit used in service costing?

• cost per meal
• cost per passenger mile
• cost per hospital bed per night
• cost per paint pot

There are two ways of expressing profit. Which one is being described here?
Expressed as a % of cost of the service

• Profit mark-up
• Profit margin

There are two ways of expressing profit. Which one is being described here?
Expressed as a % of the selling price of the service

• Profit mark-up
• Profit margin

How do you convert a profit margin % to a profit mark-up %?

• Profit Margin % / (100 - Profit Margin %)
• 100% / Profit Margin %
• (Profit Margin % - 100%) / Profit Margin %
• (100% - Profit Margin %) / 100%