Economics · Service Costing

Consider the following statements regarding the features and units of Service Costing: Statement 1: A key difficulty in Service Costing is the accurate identification and allocation of overheads, as there is often no tangible product to which the overheads can be directly attached. Statement 2: The most appropriate composite cost unit for a hospital is the 'Cost per Bed' because the service delivery is primarily tied to the capacity utilization of physical infrastructure. Statement 3: Fixed costs (Standing Charges) in Service Costing include items like rent, depreciation, and insurance, while variable costs (Operating and Maintenance Charges) include fuel, lubricants, and wages of the primary operating staff. Statement 4: Service Costing is essential for banking operations, and the cost unit for a retail savings account can be accurately measured as the 'Cost per Account per Annum'. Which of the above statements are correct?