ECONOMICS

Detailed explanation-1: -Service costing, also known as Operating Costing is a method of cost ascertainment used in those undertakings which provide services. Example, transport companies, electricity companies, hospitals, cinema houses, schools, colleges etc. use service costing to find out cost per unit.

Detailed explanation-2: -Transport Costing refers to the determination of the cost per unit of services rendered by a vehicle. It includes Water, Air, roads, and Railways. Motor transport includes Buses, Taxis, Private Cars, Carriers, and Lorries, etc.

Detailed explanation-3: -What is service costing? Service costing is the process of identifying all costs associated with building, supporting, and delivering your service. Examples of service cost components include equipment, staff labor, professional fees, software, license fees, and data center charges, to name just a few.

Detailed explanation-4: -Operating costing is suitable for industries which are rendering services, therefore, it is also known as service costing. This method applies in power supply companies, transport undertakings, water works, municipal corporations etc.

Detailed explanation-5: -Cost unit for Passenger transport organization is Passenger– Kilometer – that means cost of carrying one Passenger over a distance of one kilometer.