Tax Finance Info: Costing of Service Sector

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<b><span style="font-size: large;">Costing of Service Sector - Dani Ki Costing - CA Final Video Lectures</span></b></div>
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Costing of Service Sector - Dani Ki Costing - CA Final Video Lectures | Costing of Service Sector - Dani Ki Costing - CA Final Video Lectures | Costing of Service Sector - Dani Ki Costing - CA Final Video Lectures<br />
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<b><span style="font-size: large;">Back to Final Video Lecture </span><a href="http://www.taxfinanceinfo.com/2013/08/ca-final-costing-all-chapters-of-dani-khandelwal.html" style="font-size: x-large;">Index</a></b></div>
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<b><u><span style="color: white; font-size: 20.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">Dani
  Ki Costing<o:p></o:p></span></u></b></div>
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  Video Lectures<o:p></o:p></span></b></div>
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<b><span style="color: white; font-size: 20.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">Costing
  of Service Sector<o:p></o:p></span></b></div>
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<span style="font-size: 12pt;">Lecture
  1<o:p></o:p></span></div>
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<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=HS9e9Muv5kQ"><span style="color: blue;">Part
  1</span></a><o:p></o:p></span></u></div>
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<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=RFKdA-3cdSw"><span style="color: blue;">Part
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<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=xjH6CveZDpk"><span style="color: blue;">Part
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<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=e79y7k1mWYU"><span style="color: blue;">Part
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<span style="font-size: 12pt;">The
  End<o:p></o:p></span></div>
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<b><span style="font-size: large;">Back to Final Video Lecture </span><a href="http://www.taxfinanceinfo.com/2013/08/ca-final-costing-all-chapters-of-dani-khandelwal.html" style="font-size: x-large;">Index</a></b></div>
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<span style="font-size: large;"><u><b>Costing of Service Sector</b></u></span></div>
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<span lang="EN-US">Costing is
normally carried out for goods. The tough part is calculating and apportionment
of services. Service is an intangible product. In service sector, activities
are mainly labour intensive. As the input for providing service may be goods or
other services, it becomes very difficult to define Cost – unit. For
computation of unit cost of service, the most important cost to be considered
is the labor cost. Various additional overhead costs are also incurred in the
service sector, which are like factory overheads in the manufacturing sector.<o:p></o:p></span></div>
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<span lang="EN-US">The data
collected for costing purpose in service sector are accumulated under many
heads. They are mainly grouped in two parts fixed cost and variable cost.
Service sectors like hotels, transport sector etc use composite cost units like
passenger km, bed nights respectively. Generally activity based costing (ABC)
method is followed to calculate the cost of service sector which is then used
to determine the price per cost unit. <o:p></o:p></span></div>
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<span lang="EN-US">Mainly three
types of costing methods are used in the service sector viz. Job Costing
Method, Process Costing Method and Hybrid Costing Method. In job Costing
method, the costs for each job are monitored. In case of Process Costing
method, assignment of cost of service is first made to masses of units and unit
cost is derived on average basis. While Hybrid costing system is mixture of Job
Costing and Process Costing Method.<o:p></o:p></span></div>
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<span lang="EN-US">The newly
emerged costing technique in service sector is Customer Costing. Customer Satisfaction
is taken into consideration in this method. In this technique costs are divided
into three main categories i.e. Customer Specific Cost, Customer – Line
Categories and Company Costs. This is a very effective as well as problematic
technique as it’s very difficult to calculate customer satisfaction
numerically.<o:p></o:p></span></div>
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Costing of Service Sector - Dani Ki Costing - CA Final Video Lectures

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