Even Though There Are No Inventories for Service Companies, ABC

question 83

Essay

Even though there are no inventories for service companies, ABC systems are of great use for service companies. Explain why and how.

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Definitions:

Causal Variables

Factors that directly influence the outcome of a situation, where changes in these variables cause changes in other variables.

B2B Market

Business-to-Business market, where transactions are conducted between companies, rather than between companies and consumers.

Macro Variables

Broad variables that describe the overall context of an economy, such as GDP, unemployment rates, inflation, and interest rates.

Micro Variables

Small-scale factors that can affect a business or research outcome; often specific to a particular area or sector.