Professional Services Most Closely Relates to Which of the Following

question 27

Multiple Choice

Professional services most closely relates to which of the following cost systems?

• A) Mass services costing system
• B) Job costing system
• C) Process costing system
• D) Hybrid costing system

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Definitions:

Service Revenue

Income earned by a company through the provision of services to customers rather than the sale of physical products.

Customer Accounts

Records that maintain the details and transaction history of a customer’s interactions with a business.

Contribution Per Unit

Equals the price less the variable cost per unit. Variable used to determine the break-even point in units.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.