ACC 406 Lecture Notes - Lecture 5: Sports Equipment, Finished Good, Unemployment Benefits
28 Feb 2018
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Pro tability feasibility of introducing new services eg. government agency. For a service firm, unit costs are used to determine (must rst identify the service unit provided. A governmental agency must also identify the service provided. For example, city governments might provide household trash collection and calculate the cost by truck run or number of households served. Governmental agencies and not-for-pro t rms have a duciary responsibility to use taxpayers" and donors" funds wisely. They must accurately track costs to ensure that they are providing their services in a cost- e cient manner. It is only through carefully determining unit cost that they can best ful ll their mandate. A cost accounting system measures and assigns costs so that the unit cost of a product or service can be established. Bidding is a common requirement in the markets for specialized products and services (e. g. , such as bids for special tools, audits, legal services, and medical tests and procedures).
