In the service sector, to achieve timely reporting on the profitability of an engagement, a company will use ________.
A) budgeted rates for all direct costs
B) budgeted rates for indirect costs
C) actual costing
D) budgeted rates for some direct costs and indirect costs

Question

Quizplus · Accepted Answer

To achieve timely reporting on the profitability of an engagement in the service sector, companies often use budgeted rates for both some direct costs and indirect costs. This approach allows for quicker estimation and reporting, as actual costs can take time to fully ascertain.

In the Service Sector, to Achieve Timely Reporting on the Profitability