MEANING:
''Operating costing method is one designed to ascertain and control the costs of the undertakings which do not produce but which render services.''
According to I.C.M.A. England-
''Operating cost applies where standardised services are provided by an undertaking or by a services cost centre within an undertaking''.
SCOPE OF OPERATING COSTING:
following are:
following are:
''Operating costing method is one designed to ascertain and control the costs of the undertakings which do not produce but which render services.''
According to I.C.M.A. England-
''Operating cost applies where standardised services are provided by an undertaking or by a services cost centre within an undertaking''.
SCOPE OF OPERATING COSTING:
following are:
- Transport Services
- Supply Services
- Welfare Services
- Entertainment Services
- Municipal Services
following are:
- Undertaking are engaged in providing or operating services of unique nature.
- A large amount of capital expenditure is invested in capital assets of the undertakings depending upon the nature of business e.g.;trucks, buses, wagons, equipment, ship, etc.
- The total cost has to be classified into fixed and variable cost as these have a significant effect on the cost per unit.
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