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:

MUx/MUy

Represents the marginal utility of good x divided by the marginal utility of good y, often used in consumer choice theory to analyze optimal consumption points.

Indifference Curve Analysis

A graphical representation of consumer preferences showing combinations of goods or services among which they are indifferent, demonstrating varying levels of utility.

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, portraying preferences.

Indifference Curve

A graphical representation showing different bundles of goods between which a consumer is indifferent, reflecting their preferences and utility.