Asked by Natalie Vande Linde on May 28, 2024

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Which type of costing for their services are mass service entities likely to use?

A) Job costing
B) Process costing
C) Activity-based costing
D) Hybrid costing

Process Costing

A costing method used in manufacturing, where costs are assigned to batches of products rather than individual units, making it efficient for homogeneous products.

Mass Service

A service industry model designed to serve a high volume of customers with standardized services, typically at low cost.

  • Gain insight into the features and grouping of service organizations.
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Alexis StuartMay 28, 2024
Final Answer :
B
Explanation :
Mass service entities such as fast food restaurants or movie theaters are likely to use process costing, which involves accumulating the costs of materials, labor, and overhead across large batches of similar products or services. This allows for a more accurate estimation of the cost per unit of service. Activity-based costing and hybrid costing are more commonly used in industries with more complex processes or products. Job costing is typically used in industries where each product or service is unique and requires its own cost calculation.