Service Costing n n A cost accounting method
![Service Costing n n A cost accounting method concerned with establishing the costs of Service Costing n n A cost accounting method concerned with establishing the costs of](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-1.jpg)
![Service Costing n n n Service costing is also applied within a manufacturing setting Service Costing n n n Service costing is also applied within a manufacturing setting](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-2.jpg)
![The Differences Between Product Costing and Service Costing n There may be very few, The Differences Between Product Costing and Service Costing n There may be very few,](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-3.jpg)
![Service Costing: profit or cost centre? n Many organisations simply want to determine the Service Costing: profit or cost centre? n Many organisations simply want to determine the](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-4.jpg)
![Sub-contracting Examples n n There are companies that operate their own payroll section for Sub-contracting Examples n n There are companies that operate their own payroll section for](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-5.jpg)
![Service Cost Units n What are the cost units for a service? u Transport Service Cost Units n What are the cost units for a service? u Transport](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-6.jpg)
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![Service Costing n n A cost accounting method concerned with establishing the costs of Service Costing n n A cost accounting method concerned with establishing the costs of](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-1.jpg)
Service Costing n n A cost accounting method concerned with establishing the costs of services rendered Examples of where service costing is applied: Transport u Hotels u Tourism u Solicitors u Education u Retail distribution u Financial services u
![Service Costing n n n Service costing is also applied within a manufacturing setting Service Costing n n n Service costing is also applied within a manufacturing setting](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-2.jpg)
Service Costing n n n Service costing is also applied within a manufacturing setting For example: a manufacturer might wish to calculate the costs of the following services: Transport u Catering u Computing and IT u Accounting u Human resources u
![The Differences Between Product Costing and Service Costing n There may be very few The Differences Between Product Costing and Service Costing n There may be very few,](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-3.jpg)
The Differences Between Product Costing and Service Costing n There may be very few, if any, materials to worry about n Overheads will comprise the most significant portion of any costs of which, labour costs may well comprise as much as 70%
![Service Costing profit or cost centre n Many organisations simply want to determine the Service Costing: profit or cost centre? n Many organisations simply want to determine the](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-4.jpg)
Service Costing: profit or cost centre? n Many organisations simply want to determine the costs of operating its services from a management control and management information point of view n However, there are many organisations now that operate services for their own organisations as well as sub-contracting them out to other organisations.
![Subcontracting Examples n n There are companies that operate their own payroll section for Sub-contracting Examples n n There are companies that operate their own payroll section for](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-5.jpg)
Sub-contracting Examples n n There are companies that operate their own payroll section for themselves; and offer this service to other organisations as well Other organisations sell CPU time on their computers at times when they do not use it themselves: for example, in overnight batch work.
![Service Cost Units n What are the cost units for a service u Transport Service Cost Units n What are the cost units for a service? u Transport](https://slidetodoc.com/presentation_image_h/9d6731097fc4db0ecd8c78b792bac435/image-6.jpg)
Service Cost Units n What are the cost units for a service? u Transport - Passenger miles, tonne miles, total miles driven u Hotels - u Education – canteen services, office housekeeping, meals, room services, janitorial staff