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:

Cloud Computing

The delivery to users of on-demand services from third-party servers over a network.

Subscription-Based

A business model where customers pay a recurring price at regular intervals to access a product or service.

Electronic Communications Privacy Act

The Electronic Communications Privacy Act is legislation in the United States that protects wire, oral, and electronic communications while those communications are being made, are in transit, and when they are stored on computers.

Business Communications

The sharing of information between people within an organization or between a business and its customers.