For Service Organisations That Bill Customers at a Predetermined Average

question 193

Multiple Choice

For service organisations that bill customers at a predetermined average rate,activity-based cost systems can help to:

• A)identify the profitability of various service activities.
• B)clarify appropriate cost assignments for various service activities.
• C)Both A and B are correct.
• D)None of these answers are correct.

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Definitions:

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