3902692
Description
Mind Map by Natalie Gray, updated more than 1 year ago
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Created by Natalie Gray
about 9 years ago
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Service Costing
- SERVICE COSTING -costing method applied to a business which provides a service rather than a manufactured product.
- Examples: A Hospital, Firm of Accountancs/Solicitors, Haulage
Business, Restaurant, Hotels
- Examples: A Hospital, Firm of Accountancs/Solicitors, Haulage
Business, Restaurant, Hotels
- SERVICE COSTING : Use Composit Cost Units this uses TWO level of activity
- Examples: Cost per Tonne Mile (Shipping, haulage or Transport ) Cost per Passenger per Mile (Bus, Coach or Train)
Cost per Patient per Day (Hospital, Cost per Guest per Night ( Hotels)
- Examples: Cost per Tonne Mile (Shipping, haulage or Transport ) Cost per Passenger per Mile (Bus, Coach or Train)
Cost per Patient per Day (Hospital, Cost per Guest per Night ( Hotels)
- CHARACTERISTICS OF SERVICE COSTING
- INTANGIBILITY - No physical existence of the service unlike a produced item
- LEGAL OWNERSHIP - Little evidence exists for performance, can't return if faulty
- INTANT PERISHABILITY - Services cannot be stored, unused services cannot be stored for later use
- HETEROGENEITY - Not perfectly identical, each service is different each time
- INSEPARABILITY - Service cannot be seperated from the person who provides it
- INTANGIBILITY - No physical existence of the service unlike a produced item
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