The pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as ______________?
Correct answer: A. time and material method
- A. time and material method
- B. life cycle budgeting method
- C. life cycle costing method
- D. product life cycle method
Explanation
The time-and-material method bills service customers for labour time plus the materials used. It is common where the final amount depends on the hours worked and parts or materials supplied, such as repairs.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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