Hybrid Costing of Services Is Appropriate Where

question 34

Multiple Choice

Hybrid costing of services is appropriate where:
i. there is significant front office involvement.
ii. equipment is a key input.
iii. there is no discretion in service production.
iv. there is a very low number of services produced.

• A) i
• B) ii and iii
• C) iii and iv
• D) None of the given answers

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Definitions:

Fixed Cost

Costs that remain constant in total regardless of changes in the level of activity or volume of production.