All of the Following Statements Are Correct Except That

question 153

Multiple Choice

All of the following statements are correct except that

• A) activity-based costing has been widely adopted in service industries.
• B) the objective of installing ABC in service firms is different than it is in a manufacturing firm.
• C) a larger proportion of overhead costs are company-wide costs in service industries.
• D) the general approach to identifying activities and activity cost pools is the same in a service company as in a manufacturing company.

---

Definitions:

Contagion Theory

One of the earliest theories of collective action; suggests that individuals who join a crowd can become “infected” by a mob mentality and lose the ability to reason.

Collective Behavior

Behavior that follows from the formation of a group or crowd of people who take action together toward a shared goal.

Large Numbers

Numerical values that are significantly larger than those ordinarily encountered in daily life or in specific contexts, often requiring special methods for understanding or computation.

Social Revolutions

Significant, rapid, and often violent changes in society's structures, particularly those related to political power and class structures.