The Correct Statement Concerning Cost Accounting for Service Type Businesses

question 27

Multiple Choice

The correct statement concerning cost accounting for service type businesses is:

• A)Cost information is needed for different reasons in a service business than in a manufacturing business
• B)The cost object is normally activities
• C)Actual costs rather than budgeted costs are used to determine overhead application rates
• D)To determine the rate at which direct labour costs are applied to a particular job a labour cost per hour is developed for each employee.

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Definitions:

Objective

Something that one's efforts or actions are intended to attain or accomplish; a purpose or goal.

Ethical Coding

The practice of coding in a manner that is morally right and fair, ensuring reliability and integrity in data representation.

Upcoding

Using a code on a claim form that indicates a higher level of service, or a more severe aspect of disease or injury, than that which was actual and true.

American Health Information Management Association

A professional association for health information professionals involved in the management of medical records and healthcare information.