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:

Acquisition Transaction

A business operation in which one company purchases most or all of another company's shares to assume control.

Investment

The allocation of resources (such as capital, time, or effort) in the expectation of receiving future benefits or returns.

Credit Balance

The amount of money in a financial repository that surpasses the debit balance and is available for use.

Consolidated Goodwill

The excess value of purchase price over the fair market value of identifiable assets and liabilities acquired during consolidation.