What is the purpose of cost identification in service costing? Question 4Answer a. To determine total production costs b. To allocate costs evenly across all services c. To assign costs to specific cost units d. To reduce variable costs
The purpose of cost identification in service costing is primarily:
c. To assign costs to specific cost units
This allows organizations to understand the costs associated with providing specific services, which can help in pricing, budgeting, and financial analysis.