Question

SERVICE COSTING
Identify the three types of service entities and discuss their key features. Discuss the main difference that exists between these types of entities in respect to product costing systems.

Answer 1

Service Costing:-

1. Transport services
2. Electricity services
3. Educational Institute
4. Bank / Finance institutions
5. Cinema Hall
6. Hospital

Transport Services-
Passenger- km., (In public transportation)
Quintal- km., or Ton- km. (In goods carriage).

Electricity Supply
service
Kilowatt- hour (kWh).

Hospital Patient per day, room per day or per bed, per operation
etc.

Canteen Per item, per meal etc.

Cinema Per ticket.

Hotels Guest Days or Room Days.

Bank or Financial
Institutions
Per transaction, per services (e.g. per letter of credit, per
application, per project etc.)

Educational Institutes Per course, per student, per batch, per lecture etc.

IT & ITES Cost per project, per module etc.
Insurance Per policy, Per claim, Per TPA etc.