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hello all my name is Suresh batik former student ..i took a managerial accounting class ten years ago and have a question on how to do costing in a
hello all my name is Suresh batik former student ..i took a managerial accounting class ten years ago and have a question on how to do costing in a service based business currently i am working for a firm that manufacturers various products used in pipe lining like wrenches pipes etc .five years ago we began SERVICING PIPELINES IN REFINERIES platforms etc our service techniques go to customers to service their pipelines and charge the customers an hourly fee the company is organised around functions and not as separate profit centers currently our cost accounting system only calculate the costs of physical products we manufacture not the cost of our service side of the business while we charge our customers a fee for our various services ,our accounting system does not track the actual costs of providing these services nor does it track the products our customers purchase because our technicians require these products to complete their service function rather the cost of field technicians is overhead and hence profitable is all over places the utilization of our technicians is high and our overall profitability rises we should account for time and utilization rate of technicians cost and utilization of tools used training costs and revenue cost of the products sold during the service before jumping to any conclusion i would like to know how to proceed about possibility changes in our accounting systems and any advice you might offer regarding how to better evaluate the profitability of our new service business
my question is : what advice or guidance or suggestions would offer to me
can i get brief explanation for my question thank you