Which of the Following Statements Regarding Service Companies and Activity-Based

question 67

Multiple Choice

Which of the following statements regarding service companies and activity-based costing (ABC) is true?

• A) Service companies are not permitted to use ABC costing.
• B) Service companies find it easier to use ABC costing than manufacturing companies.
• C) Fewer repetitive activities make ABC costing more difficult to implement in service companies.
• D) Service companies have proportionately less facility-level costs than manufacturing companies.

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Definitions:

Prolactin

A hormone produced by the pituitary gland that stimulates milk production in mammals after childbirth.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with empathy, trust, sexual activity, and relationship-building.

Hyperthyroidism

A condition characterized by the excessive production of thyroid hormone by the thyroid gland, leading to symptoms like rapid heartbeat, weight loss, and increased metabolism.

Excessive Water Loss

The loss of water from the body in amounts greater than normal, potentially leading to dehydration and negative health effects.