Exam 6: Service Costing

A motor vehicle spare parts store is classified as:

The complexity of service costs for the categories of (i)professional services, (ii)service shops and (iii)mass services is low,medium or high.For each service category (i), (ii)and (iii),it is:

The value chain for a merchandising entity is most likely to include which of the following costs.

Overhead rates developed for service organisations usually include: i.upstream costs ii.downstream costs iii.production costs

A medical practice bulk billing for patient services does not usually cost specific services because: i.it does not control service-product mix ii.it cannot control costs iii.it does not determine prices

Jane Maxwell is a financial planner at Trifle Consulting.Her estimated salary cost per billable hour is $100.The estimated overhead cost per professional labour dollar for Trifle Consulting is 20 per cent and the required profit margin is 40 per cent of cost.What is Jane's charge out rate per billable hour?

If the direct labour is 10 000 hours at $12 per hour and all other costs are $240 000,what is the overhead rate per hour in dollars?

Net realisable value of inventory refers to:

Mass service entities are characterised by: i.high contact time ii.high levels of customisation iii.low levels of discretion iv.front office orientation

A personal trainer working for the local health club is providing health advice to one of the gym's customers.This activity relates to the health club's:

Which of the following does the cost of inventories in a merchandising entity includes? i.Purchase price of goods ii.A deduction for all trade discounts iii.The cost of transport to the entity iv.Labour cost of customer service personnel

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

Auto repairers would be classified as:

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

Which of the following characteristics apply to merchandising organisations? i.They purchase goods for sale ii.Outputs can be stored. iii.They produce intangible outputs.iv.Services are consumed as they are produced.

A professional audit firm charged juniors at $50 per hour,seniors at $200 per hour and the overhead rate for both was 100 per cent on direct labour.The firm added 5 per cent on total cost to arrive at a fee to be charged.If a job took 10 junior hours and 2 senior hours,what was the total cost?

The value chain for a merchandising entity includes: i.design ii.purchasing iii.marketing iv.distribution

The accuracy of service costs for the categories of (i)professional services, (ii)service shops and (iii)mass services is low,medium or high.For each service category (i), (ii)and (iii),it is:

Which of the following does the value chain for a service shop include? i.Design ii.Customer support iii.Purchasing iv.Production/delivery

Service organisations are characterised by: i.intangible outputs ii.zero inventories iii.high labour costs