A local barbershop cuts the hair of one thousand customers per month. The clients are men and
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A local barbershop cuts the hair of one thousand customers per month. The clients are men and the barbers offer no special styling. During the month of March, one thousand cus¬ tomers were serviced. The cost of haircuts includes the following:
Required:
1. Explain why process costing is appropriate for the haircutting operation.
2. Calculate the cost per haircut.
3. Can you identify some possible direct materials used for the haircutting service? Is the usage of direct materials typical of services? If so, provide examples of services that use direct materials. Can you think of some services that would not use direct materials?
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Related Book For
Cost Management Accounting And Control
ISBN: 9780324002324
3rd Edition
Authors: Don R. Hansen, Maryanne M. Mowen
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