INTRODUCTION
- Service sector, being a fastest growing sector and having a significant contribution towards the GDP in India, is a very important sector where the role of the cost and management accounting is inevitable.
- The competitiveness of a service entity is very much dependent on a robust cost and management accounting system for competitive pricing and identification of value adding activities.
- Providers of services like transportation, hotels, financial services & banking, insurance, electricity generation, transmission and distribution etc. are very much cost conscious and thrive to provide services in a cost effective manner.
- Irrespective of regulatory requirements to maintain cost records and get the records audited, service costing becomes integral and inseparable part of each service entity.
- In this chapter, we will be discussing how costing is done in service sectors like Transportation, Toll roads, Electricity generation, transmission and distribution, Hospitals, Canteen & Restaurants, Hotels & Lodges, Educational institutes, Financial institutions, Insurance, Information Technology (IT) & Information Technology Enabled Services (ITES) etc.
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