The use of process costing is of little benefit to a service provider.

Question

Quizplus · Accepted Answer

While process costing is commonly associated with manufacturing, it can also be applied to service providers such as hotels, hospitals, and transportation companies. Process costing can help service providers determine the cost per unit of service, identify areas where costs can be reduced, and evaluate the profitability of different services or departments. Therefore, process costing can be of significant benefit to service providers.

The Use of Process Costing Is of Little Benefit to a Service