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:

Subsidiaries

Companies that are controlled by a parent company through majority ownership or significant control over management decisions.

Disclosure Exemption

A provision allowing an entity to not disclose certain information that is normally required by accounting standards.

Government-related Entities

Entities that are controlled, jointly controlled or significantly influenced by a government.

Quantitative Indication

Numerical evidence or metrics that signal the performance, situation, or condition of an entity or market.