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.