Which of the following statements are true?

A) Professional service entities employ process costing.
B) Mass service entities employ job costing.
C) Service shops generally employ hybrid costing.
D) Merchandising entities employ job costing for customer services.

Question

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Final Answer : C, Explanation :  Service shops typically employ a combination of process and job costing, known as hybrid costing. Professional service entities typically use job costing, and mass service entities typically use process costing. Merchandising entities do not typically provide customer services and therefore do not use job costing for such services.

Which of the following statements are true?

A) Professional service entities employ process costing.
B) Mass service entities employ job costing.
C) Service shops generally employ hybrid costing.
D) Merchandising entities employ job costing for customer services.

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Learning Objectives

Related questions

Which of the following statements are true?A) Professional service entities employ process costing.B) Mass service entities employ job costing.C) Service shops generally employ hybrid costing.D) Merchandising entities employ job costing for customer services.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following statements are true?

A) Professional service entities employ process costing.
B) Mass service entities employ job costing.
C) Service shops generally employ hybrid costing.
D) Merchandising entities employ job costing for customer services.