List Two Types of Service Companies That Would Benefit from Using

question 45

Essay

List two types of service companies that would benefit from using activity-based management. For each company listed, state the type of cost information management needs to know.
$$\begin{array} { | l | l | } \hline \text { Type of service company } & \begin{array} { c } \text { Cost information management needs to } \\\text { know }\end{array} \\\hline & \\\hline & \\\hline\end{array}$$

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Definitions:

Section Reporting

Section reporting involves the segregation of financial data from different sectors or segments of a business to analyze performance individually.

Asset Turnover

A financial ratio indicating how efficiently a company uses its assets to generate sales revenue.

Fair Value

An estimate of the price at which an asset would change hands between a willing buyer and seller in an arm's length transaction, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Accumulated Depreciation

Represents the total depreciation of a fixed asset over its life up to the current date.