Which of the Following Statements Concerning Cost Accounting for Service

question 46

Multiple Choice

Which of the following statements concerning cost accounting for service type businesses is correct?

• A) Cost accounting is not used in service business.
• B) Cost information is needed for different reasons in a service business than in a manufacturing business.
• C) 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.
• D) Actual costs rather than budgeted costs are used to determine overhead application rates.

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Definitions:

Means Of Production

The facilities, resources, and tools used to produce goods and services, including land, labor, technology, and capital.

Capitalism

A financial structure where capital goods are owned privately or by corporations, with investments made based on individual decisions, and where the cost, creation, and allocation of commodities are predominantly influenced by competitive forces within an open marketplace.

Fascism

A far-right, authoritarian ultranationalist political ideology and movement, characterized by dictatorial power, forcible suppression of opposition, as well as strong regimentation of society and the economy.

Price Mechanism

The way in which prices rise and fall as a result of changes in supply and demand, allocating resources through the economy.