COSTING IN SERVICE

SECTOR

MMS – A
2008 - 10
Group Members

Abdul Naser- 2
Amol – 14
Ankit – 16
Asad – 21
Ashfak – 22
Dipen – 34
Gaurav - 40
Hemant – 44
Imtiaz – 50
Jatin - 53
 SERVICE COSTING OUTPUT COSTING ( Mfg.)

1
Direct Material consumed is Direct Material consumed is
LOW. HIGH.

2 Multiple cost unit adopted , Single cost unit, i.e. No. of units
e.g. Tonne-Kilometer ,Room- produced.
day, Kilowatt hour etc.

3 Procedure for recording of Costing procedure is SAME for

Different cost will vary as all Mfg.companies.
per service.

4 Services may be for Internal Output is always meant for

or External. External supplier.

5 Cost is analysed into Fixed Cost is analysed in to as per

costs & Variable costs for normal costing principles, Prime
collection and control cost, factor cost, production
purpose. cost,COGS .
Service cost analysis :
1. Standing charges – Fixed costs.
2. Running expenses- Variable costs.
Service cost per unit ( Formula)
Cost/unit = Total cost of period / No.of
service in
that period.
Application of Service costing:
g)Internal Service dept.
h)Service organization( External )
• All I problem and P problem scanned
and written on CD.