Which of the following organisations should
not be advised to used service costing.
Options
O Distribution service
O Hospital
O Maintenance division of a manufacturing
company
A light engineering company
Answers
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Option (B) HOSPITAL is the correct answer.
Explanation:
Hospital is a part of economic activity, it comes under the category Profession.
A profession is an occupation that involves the rendering of personal service of a specialised nature. The service is based on professional education, knowledge, training etc. This service is provided for a professional fee charged from the clients.
As the professionals already charge fees from the clients for the service provided. Therefore, it is advised not to use service costing in a hospital.
Answered by
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Answer:
ans A light engineering company
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