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Helot Co is thinking about expanding its business and introducing a new computer repair se


Helot Co is thinking about expanding its business and introducing a new computer repair service for customers. The board has asked if target costing could be applied to this service.

Which of the following statements regarding services and the use of target costing within the service sector is true?

A.The purchase of a service transfers ownership to the customer

B.Labour resource usage is high in services relative to material requirements

C.A standard service cannot be produced and so target costing cannot be used

D.Service characteristics include uniformity, perishability and intangibility

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