The following statements refer to organisations that use service costing: (i)  The service provided will be a homogenous product. (ii)  The cost of materials is relatively small compared to labour, expenses and overheads. (iii)  A problem with service costing is the difficulty in defining a realistic cost unit. (iv)  Inventory levels are generally high in-service costing industries. Which of the above statements are correct? a)  (i) and (ii)  b)  (ii) and (iii) c)  (ii) and (iv) d)  (i) and (iv)

The following statements refer to organisations that use service costing:

1. (i)  The service provided will be a homogenous product.

2. (ii)  The cost of materials is relatively small compared to labour, expenses and overheads.

3. (iii)  A problem with service costing is the difficulty in defining a realistic cost unit.

4. (iv)  Inventory levels are generally high in-service costing industries.

   Which of the above statements are correct?

   1. a)  (i) and (ii) 

   2. b)  (ii) and (iii)

   3. c)  (ii) and (iv)

   4. d)  (i) and (iv)