For Job Costing in Service Industries, Overhead Costs Are Usually

question 56

Multiple Choice

For job costing in service industries, overhead costs are usually applied to jobs based on:

• A)Factory overhead.
• B)Indirect labor.
• C)Indirect materials.
• D)Direct labor-hours or dollars.
• E)Direct materials.

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Definitions:

Profit On Services

Income generated from the provision of services, calculated by subtracting the cost of delivering those services from the revenue earned.

Service Fee Revenue

Income earned by a company for the provision of services to customers or clients.

Supplying Service

The act of providing services to clients or customers, as opposed to delivering physical goods.

Cost

The amount of money spent on the production or acquisition of a good or service.