Toward Understanding the Complexities of Service Costing: A Review of Theory and Practice

Authors: Bülend Terzioglu, Elsie S. K. Chan

The purpose of this paper is to outline the issues and challenges inherent in service costing, and thus to add to the limited body of knowledge in this field. Through a review of the extant literature, key service costing issues are identified and discussed. Despite the importance of the service sector as reflected in its growing contribution to the gross domestic product of many developed nations worldwide, this study demonstrates that the long-standing problems associated with service costing appear to remain unfathomed and unresolved.

This study may provide a better understanding of the challenges associated with service costing for both practising management accountants and members of academia. Deficiencies in the literature are pinpointed. This paper represents the first attempt to synthesise the currently fragmented literature on service costing, and as such, it is hoped that it will provide a platform for researchers wishing to undertake further research in service costing.


Download PDF – JAMARv11.2-Costing in Service Industries


About Prof Janek Ratnatunga 1129 Articles
Professor Janek Ratnatunga is CEO of the Institute of Certified Management Accountants. He has held appointments at the University of Melbourne, Monash University and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the USA. Prior to his academic career he worked with KPMG.