Service firms cannot use job order costing for determining a selling price for their services.

Question

Quizplus · Accepted Answer

Service firms can use job order costing to determine a selling price for their services. Job order costing involves tracking the direct costs and indirect costs of a specific job or project, which can be applied to service-based projects as well. This information can be used to determine the total cost of providing the service and set a selling price that covers these costs and generates profit.

Service Firms Cannot Use Job Order Costing for Determining a Selling