The Use of Activity-Based Costing in Service Industries

question 150

Multiple Choice

The use of activity-based costing in service industries

• A) has the same objective as in manufacturing.
• B) results in improved costing of services provided.
• C) uses cost pools to assign overhead.
• D) all of these.

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Definitions:

Additional Costs

Expenses that are not initially projected or expected in the budget.

Natural Science

The branch of science that deals with the physical world, including physics, chemistry, geology, and biology.

Economic Analysis

Economic Analysis is the systematic approach to examining the allocation of resources, encompassing various methods to study economic systems, policies, and principles.

Poverty

is the state of having insufficient material possessions or income for a person's basic needs.