Which of the Following Items Might Cause Activity-Based Costing (ABC)to

question 78

Multiple Choice

Which of the following items might cause activity-based costing (ABC) to be more difficult to implement in a service company than in a manufacturing company?

• A) The lack of direct labour
• B) The lack of facility-level costs
• C) The lack of repetitive activities
• D) The lack of overhead costs

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Definitions:

Information Overload

A state where an individual or system is overwhelmed by the quantity of information available, making processing and decision-making difficult.

Noise

Unwanted or disruptive sounds; in communication, it refers to any interference that distorts or hinders the clear transmission of a message.

Organizational Culture

The collection of values, expectations, and practices that guide and inform the actions of all team members within an organization.

Disciplined

Refers to the practice of training oneself to act in accordance with a set of rules or a code of behavior, often leading to improved efficiency or performance.