Hybrid costing of services is appropriate where:
i. there is significant front office involvement.
ii. equipment is a key input.
iii. there is no discretion in service production.
iv. there is a very low number of services produced.
A) i
B) ii and iii
C) iii and iv
D) None of the given answers

Question

Quizplus · Accepted Answer

Hybrid costing of services is typically used when there is a mix of characteristics from both job costing and process costing environments. It is appropriate in situations where services involve both standardized and customized elements, not specifically limited to the conditions mentioned in the options. None of the given statements accurately capture the essence of when hybrid costing is appropriate, as it can be suitable in scenarios with high front office involvement, where equipment is a key input, where there is discretion in service production, and regardless of the number of services produced.

Hybrid Costing of Services Is Appropriate Where