Service Costing CMA Exam Question Solution
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Kamrul HassanService Costing CMA Exam Question Solution
Uploaded by
Kamrul HassanService Costing
CMA Exam Questions & Solutions
Cost Accounting (IL-1), CMA September’2022, Q-6 (a)
Discuss briefly the salient features of service costing.
Solution:
Important/salient features of Operating costing:
The costing in a service industry can be better understood with the help of the following characteristics:
1) Intangible Products: Service costing deals with the operating cost of products which does not have any
physical form but satisfies consumer needs and wants.
2) Collection of Cost Data: The documents used for service costing of products include cost sheet, bills payables,
daily log sheet, etc.
3) Unique and Standard Service: The services so offered by such organizations are specialized and exclusive.
4) Less Working Capital: The service costing involves less working capital since the direct cost of raw material
and other direct expenses is comparatively low.
5) Cost Per Unit: The cost per unit is mainly calculated in service costing. Here, the cost unit is determined by the
type of service industry the business belongs to, and it usually differs from company to company. Like, in the
case of goods transport it is ‘tonne-miles’; whereas, in boilers, it is ‘per cubic centimetre-litre’.
6) Internal or External Service: The service costing can be performed internally, to determine the operating cost
of the supporting activities in manufacturing industries. Else, it can be carried out externally, by the companies
dedicated to rendering such services.
7) Cost Classification by Behaviour: In the operating cost sheet format, all the business costs are classified
according to their behaviour, i.e., fixed costs, semi-variable costs and variable costs.
8) Periodic or Order Wise Computation: The service costing records the overheads at regular intervals, i.e.,
monthly or yearly but for operating cost of vehicles like tractors and JCB machines, order wise computation is
adopted.
Advanced Cost Accounting (PL-III), CMA December’2020, Q-3 (b)
Service Costing
CMA Exam Questions & Solutions
Solution:
Advanced Cost Accounting (PL-III), CMA June’2020, Q-1
Service Costing
CMA Exam Questions & Solutions
Solution:
Service Costing
CMA Exam Questions & Solutions
Advanced Cost Accounting (PL-III), CMA June’2019, Q-5 (a)
Solution:
Service Costing
CMA Exam Questions & Solutions
Advanced Cost Accounting (PL-III), CMA December’2017, Q-5 (a),(b)
Solution:
5(a):
Service Costing
CMA Exam Questions & Solutions
5(b):
Advanced Cost Accounting (PL-III), CMA June’2017, Q-4 (b)
Service Costing
CMA Exam Questions & Solutions
Solution:
