Question

When a job is completed in a service organization, the job costs are transferred to the a.cost of goods sold account b.finished goods account c.cost of services account d.work in process account

Answer 1

Answer:

c.cost of services account

Explanation:

A service organisation is defined as one that committed to the welfare of its customers and it's members. They focus on providing services to the client rather than products.

When services are rendered the costs are transfered to an account called the cost of services account.

Cost of services account includes all costs directly involved in delivering a service to a customer. It can include labour, shipping and materials.

The focus is how much it costs to deliver a service by the organisation rather than a physical good.