Which type of costing for their services are mass service entities likely to use?
A) Job costing
B) Process costing
C) Activity-based costing
D) Hybrid costing

Question

Quizplus · Accepted Answer

Mass service entities such as fast food restaurants or movie theaters are likely to use process costing, which involves accumulating the costs of materials, labor, and overhead across large batches of similar products or services. This allows for a more accurate estimation of the cost per unit of service. Activity-based costing and hybrid costing are more commonly used in industries with more complex processes or products. Job costing is typically used in industries where each product or service is unique and requires its own cost calculation.

Which Type of Costing for Their Services Are Mass Service