What Sometimes Makes Implementation of Activity-Based Costing Difficult in Service

question 49

Multiple Choice

What sometimes makes implementation of activity-based costing difficult in service industries is

• A) the labeling of activities as value-added.
• B) identifying activities, activity cost plus, and cost drivers.
• C) that a larger proportion of overhead costs are company-wide costs.
• D) attempting to reduce or eliminate non-value-added activities.

---

Definitions:

Payable

Due for payment; a financial obligation that one party has to pay to another.

Issued

The act of officially distributing or making something available, often used in contexts like the issuance of currency, stocks, or legal documents.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or named party.

Bearer Instrument

An instrument payable to cash or to whoever is in possession of the instrument.