Exam 6: Service Costing

Front office is a term used to identify activities where:

Fixed costs can be classified further as either committed or discretionary.

Which of the following items may be included in a service firm's overhead cost? I upstream costs such as research and development Ii downstream costs such as marketing Iii professional labour costs

An architectural entity is likely to base its service costing on:

Which of the following is NOT a description of a mass service provider?

Support processes in the service firm value chain include human resources and customer support.

The costs of services may be estimated as: i.a basis of setting prices ii.a basis to determine which services to promote iii.a basis of cost control iv.an alternative to actual cost analysis

Travel agencies would be classified as:

Which of the following statements best completes the following sentence? 'A realisation rate below 100 per cent indicates that the firm …'

Upstream costs for a service entity include: i.design ii.research and development iii.distribution iv.customer support

Non-repetitive services for retailers can be more appropriately costed using:

Which of the following statements describe a difference between the value chain of a service firm and the value chain of a merchandising firm?

The realisation rate for a firm equals:

Which type of costing for their services are mass service entities likely to use?

Process costing for service entities applies when:

Underapplied and overapplied overhead is not usually required to be adjusted in service costing systems.Why?

Back office is a term used to identify activities where:

For non-profit entities that are also merchandisers,inventory is valued at:

Which of the following characteristics apply to service organisations? i.They produce intangible outputs ii.Services cannot be stored. iii.They purchase goods for sale.iv.Services are consumed as they are produced.

According to the accounting standards,the cost of inventories should include all costs incurred in getting the inventory to the point where it can be sold as intended.