Which of the Following Statements Concerning Cost Accounting for Service

question 9

Multiple Choice

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

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

---

Definitions:

Discharges

The formal termination of an employee's position within a company, often due to redundancy or disciplinary reasons.

Outplacement

A service provided by some organizations to help former employees transition to new jobs following layoffs or terminations.

Employee Polygraph Protection Act

A federal law that prohibits most private employers from using lie detector tests, either for pre-employment screening or during the course of employment.

Adverse Reactions

Negative or harmful responses, typically in the context of pharmaceuticals, but can also apply to feedback or reactions in other areas.