Costing In Service Sector

COSTING IN SERVICE SECTOR MMS – A 2008 - 10

Group Members Abdul Naser- 2 Amol – 14 Ankit – 16 Asad – 21 Ashfak – 22 Dipen – 34 Gaurav - 40 Hemant – 44 Imtiaz – 50 Jatin - 53

SERVICE COSTING

OUTPUT COSTING ( Mfg.)

Direct Material consumed is LOW.

Direct Material consumed is HIGH.

2

Multiple cost unit adopted , e.g. Tonne-Kilometer ,Roomday, Kilowatt hour etc.

Single cost unit, i.e. No. of units produced.

3

Procedure for recording of Different cost will vary as per service.

Costing procedure is SAME for all Mfg.companies.

4

Services may be for Internal or External.

Output is always meant for External supplier.

5

Cost is analysed into Fixed costs & Variable costs for collection and control purpose.

Cost is analysed in to as per normal costing principles, Prime cost, factor cost, production cost,COGS .

1

Service cost analysis : 1. Standing charges – Fixed costs. 2. Running expenses- Variable costs. Service cost per unit ( Formula) Cost/unit = Total cost of period / No.of service in that period. Application of Service costing: g)Internal Service dept. h)Service organization( External )

• All I problem and P problem scanned and written on CD.