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

Hybrid Costing

A costing system that combines elements of both job costing and process costing, applicable in manufacturing environments producing similar products in batches.

Front Office

The part of a business where customer interaction and the administrative work of a business are conducted.

Equipment Input

The machinery and tools used in the production or service process.