Arithmetical accuracy is confirmed through this process of comparing debits and credits. This question requires a fill-in-the-blank answer; there are no other options to analyze. The reason for this is that with service industries, more than one thing affects the cost.

• The total cost of providing a service will include labour, materials, direct expenses and overheads.
• This question requires a fill-in-the-blank answer; there are no other options to analyze.
• Let us consider baggage on an airline, the weight of the baggage and the km travelled by the plane will affect how much fuel cost is needed.
• Therefore, the composite cost unit here will be $ per kilo per km travelled.

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At the breakeven point, total revenue equals total costs (both fixed and variable). Hotels, for example, may use the ‘occupied bed-night’ as an appropriate unit for cost ascertainment and control. Another example can be hotels, for example, may use the ‘occupied bed-night’ as an appropriate unit for cost ascertainment and control.

Question

The main in cinema halls composite cost unit is problem with service costing is the difficulty in defining a realistic cost unit that represents a suitable measure of the service provided. (a) Overly broad; cost classification follows established frameworks.(b) Too limited; the three main categories are well-established in cost accounting.(d) Too limited; the three main categories are well-established in cost accounting. In service costing, labour may be the only direct cost involved in providing a service. The total cost of providing a service will include labour, materials, direct expenses and overheads. Which one of the following can be described as the composite cost unit in cinema halls and why? Let us consider baggage on an airline, the weight of the baggage and the km travelled by the plane will affect how much fuel cost is needed.

• (a) Overly broad; cost classification follows established frameworks.(b) Too limited; the three main categories are well-established in cost accounting.(d) Too limited; the three main categories are well-established in cost accounting.
• Post-balancing refers to checking the accuracy of accounting entries after they’ve been posted to the ledger.
• A composite cost unit is a measure used to allocate costs in situations where multiple services or products are provided.

ACCA MA Syllabus C. Cost Accounting Techniques – Suitable unit cost measures – Notes 16 / 17

Marginal cost represents the additional cost incurred by producing one more unit. This is crucial for decision-making, particularly in pricing strategies, production levels, and determining whether to accept or reject additional orders. A master budget is a comprehensive document that consolidates all individual budgets (e.g., sales budget, production budget, cash budget) into a single, overall plan for the organization. This is not a multiple-choice question; it requires a procedural explanation. Post-balancing refers to checking the accuracy of accounting entries after they’ve been posted to the ledger. This involves verifying that debits equal credits in each account and across the entire general ledger.

Correct Answer:

Therefore, the composite cost unit here will be $ per kilo per km travelled. A budgetary control system provides a framework for planning, monitoring, and controlling an organization’s resources. Management uses this system to make decisions, track performance, and take corrective actions.

A composite cost unit is a measure used to allocate costs in situations where multiple services or products are provided. In a cinema hall, a composite cost unit might be a “seat-showing” or a “ticket sold,” depending on how costs are allocated. The cost per service unit is calculated by establishing the total costs involved in providing the service and dividing this by the number of service units in providing the service.